Appeals Court Stops Judge’s Order Overruling Trump, Congress on Planned Parenthood Funding
A federal appeals court has handed the Trump administration a significant legal victory in its effort to end taxpayer funding for Planned Parenthood and other large abortion providers, temporarily blocking a lower court order that would have forced continued payments despite a new federal law prohibiting them.
On Monday, December 8, a three-judge panel of the 1st U.S. Circuit Court of Appeals issued an administrative stay, halting enforcement of a December 2 preliminary injunction from U.S. District Judge Indira Talwani. That injunction had required the administration to keep sending Medicaid funds to Planned Parenthood affiliates in 23 states, even though Congress explicitly barred such funding in newly enacted legislation.
At issue is Section 71113 of the One Big Beautiful Bill Act (OBBBA), which President Donald J. Trump signed into law on July 4. The provision blocks federal Medicaid dollars from flowing to any “prohibited entity” that both performs abortions and received more than $800,000 in Medicaid reimbursements in 2023. The one-year defunding measure was crafted to ensure that American taxpayers are not forced to subsidize abortion providers, directly or indirectly.
In July, a coalition of 23 Democrat-led states — led by New York Attorney General Letitia James — sued the Trump administration in an attempt to stop the law from taking effect.
Judge Talwani sided with the states earlier this month, claiming Section 71113 “fails to provide states with clear notice” and is “impermissibly ambiguous” regarding which organizations are covered. She further argued that the statute amounted to an “unconstitutional retroactive condition” on state participation in Medicaid.
Talwani briefly paused her own ruling for seven days to allow the administration to appeal. The Trump administration quickly filed an emergency motion with the 1st Circuit, warning that the district court’s decision threatened to undermine Congress’s constitutional authority.
“Undaunted, the same district court has again enjoined enforcement of Section 71113, concluding this time that Congress had not made clear which entities were covered by the funding prohibition,” administration attorneys wrote. “Defendants respectfully request a stay pending appeal and an immediate extension of the administrative stay to prevent any interruption in the applicability of a duly enacted Act of Congress that this Court has already once acted to leave in effect.”
The appeals court agreed, extending the administrative stay and allowing the administration to continue enforcing the defunding provision while the case proceeds. The panel — which included Chief Judge David Barron, an Obama appointee, and Judges Gustavo Gelpí and Lara Montecalvo, both Biden appointees — said it would rule “promptly” on the broader request for a stay pending appeal.
This is not the first time Judge Talwani has attempted to block President Trump’s efforts to cut off federal funding to Planned Parenthood. In a separate lawsuit brought directly by the abortion giant, Talwani previously ruled against the administration — only to have her decision stayed by the same appeals court, allowing the defunding policy to move forward.
The legal battle highlights the enormous financial stakes. Planned Parenthood’s 2024 annual report shows the organization brought in more than $2 billion in revenue while performing a record 402,200 abortions — a 23 percent increase since 2013. Over the same period, the group’s non-abortion health services plummeted, including a 61 percent decline in breast exams, a 54 percent drop in pap tests, and a 63 percent reduction in prenatal care.
Pro-life advocates say those figures expose Planned Parenthood’s true priorities.
“Planned Parenthood’s more than 40 closures this year are a reflection not only of taxpayers finally having their voice heard, but also their failing business model that prioritizes abortion, politics and profits at the expense of women and children,” said Marjorie Dannenfelser, president of Susan B. Anthony Pro-Life America, responding to Talwani’s original injunction.
“The One Big Beautiful Bill Act is federal law passed by Congress and signed by the president,” she added. “The Biden-era courts cannot continue to shield abortion profiteers from accountability.”
If the appeals court ultimately upholds the stay, the Trump administration will be able to continue enforcing the OBBBA’s defunding provision nationwide while the underlying constitutional questions are resolved. The case — James et al. v. U.S. Department of Health and Human Services — is expected to shape the future of Congress’s authority to restrict Medicaid funding for abortion providers under its spending power.