A major Medicaid funding battle erupted this week after a federal judge issued a ruling on the controversial One Big Beautiful Bill Act. The bill, passed by Congress and signed by President Donald Trump on July 4, partially defunds Planned Parenthood. On Monday, U.S. District Judge Indira Talwani temporarily blocked part of that law.
Talwani, based in Massachusetts, granted a partial preliminary injunction. Her decision protects some Planned Parenthood facilities from losing Medicaid funds. The judge emphasized that defunding would cause serious harm to non-abortion services provided to low-income patients.
Talwani stated that the Trump administration would face “at most minimal harm” from her ruling while the lawsuit continues. Her order excludes some Planned Parenthood locations. It protects only those that receive less than $800,000 in Medicaid reimbursements or that don’t provide abortion services.
Planned Parenthood welcomed the ruling as a partial victory. The organization stressed the case is far from over. “We’re hopeful the court will expand protections,” the group stated. “While grateful, we’re disappointed not all affiliates received relief.”
The lawsuit targets the One Big Beautiful Bill Act, a massive budget law passed without Democratic support. The law includes a provision stripping Medicaid funding from Planned Parenthood. The nonprofit warned that losing federal funds could force the closure of 200 clinics, affecting more than a million patients.
Planned Parenthood attorneys argued the bill unfairly punishes clinics not involved in abortion care. They stressed that Medicaid rarely pays for abortions. Instead, the funding supports essential services like cancer screenings, STI testing, and contraception.
Furthermore, they warned that without these services, unplanned pregnancies would rise, and serious health conditions could go undetected. As a result, they described the potential consequences as “grave.”
Meanwhile, the Department of Justice defended the law in court. According to DOJ attorneys, it aimed to block federal support for “Big Abortion.” Moreover, they argued the injunction interfered with a law that had already been passed by Congress and signed by the president
Two weeks ago, Talwani issued a temporary restraining order with little explanation. Republican lawmakers criticized her decision as judicial overreach. In response, she later clarified her reasoning.
The Medicaid funding battle will likely continue in higher courts. The Trump administration is expected to appeal Talwani’s order to the First Circuit. The final outcome could affect how states and federal agencies fund reproductive healthcare nationwide.
As the legal fight unfolds, the Medicaid funding battle becomes a central issue in America’s ongoing debate over abortion rights, healthcare access, and government power.
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