A federal judge will hear arguments Wednesday regarding a spending law implemented in July that cut off Medicaid reimbursements for Planned Parenthood, a crucial provider of reproductive health services. This legislation, which impacts organizations receiving over $800,000 annually in Medicaid, has sparked debate as Planned Parenthood argues the law violates constitutional rights, while anti-abortion supporters claim it is a necessary step toward curbing abortion access. An appellate court previously ruled the law could be enacted as legal challenges unfold.

According to a report released by Planned Parenthood, the new law resulted in a staggering loss of $45 million in September due to clinics needing to personally cover costs for Medicaid patients, which they deem unsustainable. The organization notes that nearly half of its patients rely on Medicaid for healthcare services, excluding abortions which are not covered by the federal program.

Legal actions have been initiated against Health and Human Services Secretary Robert F. Kennedy Jr. by Planned Parenthood Federation and associated organizations from states including Massachusetts and Utah. These lawsuits highlight concerns that health providers in Maine have ceased primary care services due to the law while awaiting court resolutions. In response, seven states are utilizing state funds to counterbalance lost federal Medicaid reimbursements, covering about $200 million of the approximately $700 million Planned Parenthood spends yearly on Medicaid patients.

The toll of the legislation is significant, as many clinics are compelled to ask Medicaid patients to pay out of pocket, while some may close entirely. Since July, 20 Planned Parenthood clinics have shuttered, totaling 50 closures during Trump's second term, indicating a troubling trend for accessible healthcare services.

The debate centers on abortion access epitomized by Carol Tobias, the president of the National Right to Life Committee, who views the legislation as a moral necessity, asserting that taxpayer dollars indirectly support abortion services. However, Planned Parenthood’s leadership, represented by President Alexis McGill Johnson, insists that government should not influence pregnancy outcomes and affirms their commitment to providing comprehensive healthcare services.

Despite being the largest abortion provider in the U.S., abortions made up only 4% of their services in 2024. The majority, at 80%, were for testing for sexually transmitted infections and contraception services, with the remaining portion made up of cancer screenings, primary care, and behavioral health support. Planned Parenthood California Central Coast's CEO, Jenna Tosh, emphasizes that the Medicaid cuts threaten both abortion and non-abortion medical care equally, and that the organization serves as a primary healthcare provider for many vulnerable individuals. She warns that these changes jeopardize the entire healthcare safety net for the most at-risk populations.