Federal Judge Blocks Defunding of Planned Parenthood — for Now

[Update: Tue., July 29, 2025, 12:55pm] California Attorney General Rob Bonta has sued the Trump administration over the sweeping budget reconciliation law (“Big Beautiful Bill”), specifically the “Defund Provision,” signed by President Donald Trump this month, his office announced in a press release this Tuesday. “This provision, which targets Planned Parenthood, is a direct attack on the healthcare access of millions of low-income Americans, disproportionally affecting women, LGBTQ+ individuals, and communities of color,” the press release said. “This provision specifically blocks Medicaid reimbursements for essential healthcare services, such as cancer screenings, birth control, and STI testing, at Planned Parenthood health centers.”

Attorney General Bonta is co-leading a coalition of 22 attorneys general and one governor to ask the court to enjoin the Trump administration from implementing “this devastating and unlawful provision, which will lead to widespread disruptions in preventative care and increase healthcare costs, if allowed to stand.” The coalition also assert that the states “should not be co-opted into executing this unconstitutional provision.”

Read the full announcement here.

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[Original Story] Just one week after Planned Parenthood clinics across California — including six on the Central Coast — lost access to Medicaid reimbursements, a federal judge in Massachusetts has halted the policy that made it happen, at least for now.

On Monday, July 28, U.S. District Judge Indira Talwani issued a preliminary injunction blocking enforcement of a provision in the “One Big Beautiful Bill Act” that prohibited Medicaid reimbursements to any nonprofit that provides abortion and received more than $800,000 in Medicaid funding in 2023.

In her decision, Talwani concluded that the rule amounted to retaliation against Planned Parenthood for continuing to offer abortion care, calling it a violation of the organization’s First Amendment rights. She noted that the $800,000 funding threshold was so narrowly drawn that it effectively singled out Planned Parenthood, making clear the provision was designed to force clinics to stop providing abortions or lose Medicaid access.

The ruling stems from a lawsuit filed earlier this month by Planned Parenthood Federation of America. According to reporting by The New York Times, Talwani found the provision “requires each member to disaffiliate with Planned Parenthood Federation and stop providing abortion to continue participating in Medicaid programs.” She wrote that the law “kneecaps the entire organization.”

Luz Reyes-Martín, vice president of advocacy and engagement for Planned Parenthood California Central Coast, called the decision an important step but emphasized the legal fight isn’t over. “Our doors are open today, and they will be open tomorrow,” she said. “In this moment of unprecedented threat, our top priority is to preserve access to all health services, for all patients, at all six of our health center locations — no matter what.”

The ruling temporarily restores access to Medicaid reimbursements for the clinics affected — including those in Santa Barbara and San Luis Obispo counties, where Planned Parenthood California Central Coast warned it stood to lose $17 million annually, or about 60 percent of its revenue.

Planned Parenthood affiliates across the country had faced an immediate choice: cease abortion services and disaffiliate from the national organization or lose Medicaid funding entirely. While federal law already prohibits the use of Medicaid funds for abortion services, the new provision leveraged unrelated reimbursements as political pressure.

Talwani also pointed to the broader public health fallout, saying the policy would disrupt access to essential services like family planning, STI testing, and other routine care — a level of harm that, in her view, warranted blocking the rule from taking effect.

The Trump administration has appealed the restraining order issued earlier this month. Until that process plays out, the injunction remains in place, and Medicaid reimbursements can continue — at least temporarily.

If the appeals court reverses the ruling, the funding ban could be reinstated, putting California’s reproductive health infrastructure back on uncertain footing. For now, clinics remain open, and the funding lifeline has been restored.