A federal judge will hear arguments Wednesday about whether a spending law passed in July that ended Medicaid reimbursements for Planned Parenthood can remain in effect while legal challenges continue.

President Donald Trump’s tax and spending cut bill targets organizations that provide abortions and receive over $800,000 annually in Medicaid reimbursements. Planned Parenthood argues that the law violates the Constitution, while anti-abortion activists have expressed their support for the legislation.

An appeals court had previously allowed the law to take effect in September as a lower court deliberates on Planned Parenthood’s claims.

According to a report released ahead of the hearing, Planned Parenthood estimated a financial loss of $45 million in September alone, as clinics across the nation struggled to support Medicaid patients without federal funds—a situation they deemed unsustainable.

Nearly half of Planned Parenthood’s patients rely on Medicaid for healthcare services beyond abortions, which are not covered by the federal insurance program that serves millions of low-income and disabled Americans.

Legal fight

Planned Parenthood Federation of America and member organizations in Massachusetts and Utah filed lawsuits against Health and Human Services Secretary Robert F. Kennedy Jr. in July, with a significant medical provider in Maine forced to suspend primary care services during the litigation process.

In response to the funding cuts, seven states—California, Colorado, Massachusetts, New Jersey, New Mexico, New York, and Washington—have allocated state funds to compensate for the lost federal Medicaid reimbursements.

This funding has covered around $200 million of the $700 million the organization spends annually on Medicaid patients, according to Planned Parenthood.

The financial strain has resulted in some clinics requiring Medicaid patients to pay out of pocket and others shutting down completely, contributing to the 20 Planned Parenthood-affiliated clinics that have closed since July. This brings the total closures to 50 since the beginning of Donald Trump's second term.

“The consequence is patients being forced to make impossible choices between essential services,” said Planned Parenthood President and CEO Alexis McGill Johnson in a statement to the Associated Press.

Abortion at the heart of the debate

Carol Tobias, president of the National Right to Life Committee, considers Trump’s legislation a step forward in the anti-abortion movement. Although federal tax dollars aren’t directly used for abortions, she argues that taxpayers are indirectly funding abortion services through organizations like Planned Parenthood that rely on Medicaid reimbursements.

“Being forced to pay for that is just very objectionable,” Tobias said.

She suggested that Planned Parenthood could cease offering abortions if it wishes to continue providing medical care to vulnerable populations.

In contrast, Planned Parenthood’s president has reaffirmed their commitment to offering abortion services, stating, “The government should not dictate pregnancy outcomes.”

A range of services hit

Planned Parenthood, the largest abortion provider in the country, reported that only 4% of its medical services were abortion-related as of 2024, with screenings for sexually transmitted infections and contraception services constituting around 80% of services. The remaining 15% include cancer screenings, primary care, and behavioral health services.

Jenna Tosh, CEO of Planned Parenthood California Central Coast, emphasized that the Medicaid cuts threaten both abortion and non-abortion medical care. Approximately 70% of patients at her branch depend on Medicaid for healthcare.

“Many of our patients rely on us as their primary healthcare provider,” Tosh emphasized, warning that the cuts dismantle the healthcare safety net for some of the most vulnerable individuals in society.