Appeals court sides with Trump on budget provision cutting Planned Parenthood funds

An appeals court greenlights the Trump administration's enforcement in 22 Democrat-led states of a bill provision that cut off Medicaid funding to Planned Parenthood clinics.

Activists opposing funding for Planned Parenthood demonstrate in front of the U.S. Supreme Court on Wednesday, April 2, 2025. (Bill Clark/CQ-Roll Call, via Getty)

The states’ lawsuit turned on the argument that Congress did not provide enough specifics about the Medicaid cuts in the One Big Beautiful Bill Act, in violation of the Constitution's spending clause. Talwani, an Obama appointee, was persuaded enough to grant an injunction, but the appeals court paused it, saying the argument was likely to fail.

The lawsuit was one of several that stemmed from Congress passing the One Big Beautiful Bill Act's funding cuts to certain Medicaid recipients who provide abortions. Trump signed the bill into law on July 4, and the cuts were set to last for one year.

Planned Parenthood, the nation's largest abortion provider, said in a separate lawsuit in the summer that the provision unconstitutionally aimed to punish the nonprofit for its views, pointing to celebrations from Republican lawmakers about defunding Planned Parenthood specifically.

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Activists rally in front of the Supreme Court in favor of and against abortion access.   (KAREN BLEIER/AFP via Getty Images)

In the case brought by the states, the Trump administration argued that the bill's budget restrictions were standard and approved by the legislative and executive branches.

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"Congress enacted a routine restriction on the use of federal funds—something it does in every budget cycle," Trump Department of Justice lawyers wrote. "The Medicaid statute contains dozens of limits on how States may use federal funds. … When the States agreed to participate in Medicaid, they knew that they would have to abide by such conditions."

Fox News Digital reached out to the California attorney general’s office for comment.

Ashley Oliver is a reporter for Fox News Digital and FOX Business, covering the Justice Department and legal affairs. Email story tips to ashley.oliver@fox.com.

https://www.foxnews.com/politics/appeals-court-sides-trump-budget-provision-cutting-planned-parenthood-funds