A federal judge has blocked a provision that would have cut federal Medicaid funding to Planned Parenthood and other nonprofit reproductive health providers, issuing a preliminary injunction in a case brought by 22 states and the District of Columbia. U.S. District Judge Indira Talwani’s ruling, set to take effect next week, ensures that Medicaid funding continues while the lawsuit proceeds.
The states argued that the federal government violated the Constitution’s spending clause by not providing clear guidelines or sufficient time to comply with conditions included in the budget reconciliation package passed this year. The provision specifically targeted Planned Parenthood clinics and a few other reproductive health providers that also offer legal abortion services. Talwani ruled that the plaintiff states demonstrated a substantial likelihood of success and have standing because the law’s requirements imposed increased costs and administrative burdens.
Under the injunction, federal Medicaid payments must continue “in the customary manner and timeframes” to the states involved, without regard to whether providers fall under the disputed provision. The court also ordered that the ruling be shared with all HHS personnel and relevant state agencies. A nominal bond of $100 was set for the plaintiffs, far below the $600,000 per month they requested.
State officials praised the decision, highlighting that allowing the defunding provision to take effect would have restricted access to critical healthcare services and increased strain on state resources. Legal experts noted that the states’ argument—that Congress must provide clear notice to participating states—was likely stronger than the arguments in previous cases filed directly by Planned Parenthood.
Planned Parenthood has also pursued separate legal challenges, including one in Maine and a case at the federal appellate level. While some rulings in those cases allowed aspects of the funding cuts to take effect, Talwani’s latest decision in the states’ lawsuit temporarily halts implementation. Anti-abortion groups have continued to advocate for the provision, framing it as a restriction on abortion funding, though federal law already limits abortion coverage under Medicaid except in specific circumstances.
The Medicaid provision is set to expire in July 2026 unless extended by Congress, and legal and political battles over Planned Parenthood’s funding are expected to continue in the lead-up to upcoming elections. Experts suggest rulings like Talwani’s could strengthen Planned Parenthood affiliates’ operations and influence the broader national debate on reproductive healthcare funding.