Planned Parenthood is set to lose significant federal funding due to a new policy under President Trump’s administration, dubbed the “big beautiful bill.” This shift is expected to impact many Americans’ access to abortion services and, more broadly, primary healthcare.
Nisha Verma, a senior adviser for reproductive health policy, expressed concern: “If that happens, it’s going to be pretty devastating.” She pointed out that the healthcare system is already under strain.
The comprehensive policy package, signed on July 4th, includes provisions that will bar healthcare providers receiving over $800,000 in federal rebates from performing abortions, consequently affecting Medicaid funding for a year.
In response to these changes, Planned Parenthood has initiated legal action against the Trump administration, claiming it represents many of the clinics facing these cuts. A federal judge has temporarily suspended Medicaid funding for two weeks as the case moves forward.
The Department of Health and Human Services declined to comment on the lawsuit.
Judge Indira Talwani from Massachusetts, who issued the initial injunction, will review the case again on July 21 to determine if the suspension should continue.
Planned Parenthood’s staff argue that withholding Medicaid funds will lead to significant reductions in healthcare services, layoffs, and even clinic closures, which could have dire implications for public health.
Most Medicaid reimbursements relate to healthcare services not involving abortion, generally restricted to cases like rape, incest, or when the health of the pregnant person is at risk.
Since it began in 1916, Planned Parenthood has served over 2 million patients annually through nearly 600 clinics across the U.S., providing vital services like cancer screenings and testing for sexually transmitted infections.
If the proposed Medicaid funding ban goes through, it would severely undermine the clinic’s capacity to offer both preventive and primary care—a shift that could destabilize the healthcare landscape.
In many areas, especially rural ones, Planned Parenthood may be the sole provider of sexual and reproductive health services for individuals on Medicaid. The potential closure of these clinics raises concerns about where those patients will seek care.
Stephvonne Steele, a 25-year-old from Florida, has experienced this firsthand. After struggling to get an appointment with a specialist for a yeast infection, she turned to Planned Parenthood, where she was able to see a provider within 24 hours. “I would have been in trouble because I couldn’t get there,” she recalled.
Alina Salganicoff, a senior vice president in women’s health policy, noted that while there might be other providers nearby, they often aren’t equipped to handle the influx of patients that Planned Parenthood currently serves. Many private OB-GYN offices aren’t accepting Medicaid due to low reimbursement rates, which only adds to the challenge.
The U.S. is already facing a shortage of primary care physicians and OB-GYNs, with projections indicating a shortfall of 20,200 to 40,400 primary care doctors by 2036.
For Medicaid patients, one alternative is to visit Federally Qualified Health Centers (FQHCs), which are community-based providers with federal funding. However, these centers don’t have the capacity to absorb the number of patients that Planned Parenthood does.
In 2020, Planned Parenthood Health Centers accounted for 33% of the 4.7 million people seeking contraceptive care. An analysis revealed that FQHCs would need to increase their capacity by 56% to meet this demand, which they currently can’t do.
Verma cautioned that without regular access to preventive care like cancer screenings, many could face serious health consequences. “Some people don’t really realize how many rely on Planned Parenthood for their everyday care,” she said, emphasizing the possible public health fallout as more clinics face funding cuts.
