Planned Parenthood of California loses $300 million in federal funding under court order

By Kristen Hwang | CalMatters

California Planned Parenthood, the largest abortion provider in the state, lost all federal funding this week under a preliminary court order that allows the money to be withheld while a larger legal dispute plays out.

Planned Parenthood Federation of America sued the Trump Administration on behalf of its members earlier in July over provisions of the congressional reconciliation bill — also known as the “One Big Beautiful Bill Act” — that prohibited Medicaid reimbursements for large nonprofit health clinics that provide abortions. The lawsuit argues that the law defunds Planned Parenthood’s services in violation of multiple constitutional amendments.

The ruling, which left both parties dissatisfied, partly blocked the law from taking effect but only for a small fraction of Planned Parenthood organizations. None of California’s Planned Parenthood health centers are included.

In the Monday night ruling, U.S. District Court Judge Indira Talwani stated that Planned Parenthood’s arguments show a “substantial likelihood of success,” but her order did not apply to most of the organization’s nearly 600 clinics. Instead the only clinics that may continue to receive funding while the lawsuit is ongoing are those that do not provide abortions because they are located in states where it is banned. Smaller health centers that received less than $800,000 in federal funds will also be allowed to receive federal reimbursements. 

A previous temporary restraining order that blocked the funding cut for all Planned Parenthood health centers expired Monday. The new order replaces it. 

In California, the funding loss amounts to roughly $300 million and jeopardizes the sexual and reproductive health clinic network’s ability to keep its doors open throughout the state, said Jodi Hicks, president and chief executive of Planned Parenthood Affiliates of California. 

“The harsh reality is, the Planned Parenthood defund will be felt in every corner of the state and will disproportionately impact people who have low incomes, rely on Medicaid programs, or have no other options for health care,” Hicks said in a statement.

In a statement to The New York Times, a spokesperson for the U.S. Department of Health and Human Services criticized the fact that funding for some organizations will remain, saying “States should not be forced to fund organizations that have chosen political advocacy over patient care.”

On Tuesday, HHS filed a notice of appeal.

In the lawsuit, Planned Parenthood argues that the one-year funding ban enacted by Congress violates the organization’s First Amendment rights and the Due Process Clause of the Fifth Amendment by allowing smaller, independent abortion providers to continue receiving federal funds.

The national Planned Parenthood federation said in a statement that it remains hopeful the court will block the funding cuts for other members, including California’s, in a future ruling.

Planned Parenthood operates 114 clinics in California, serving more than 1 million patients each year. About 80% of those patients use Medi-Cal, the state version of the federal Medicaid program for people with low incomes or disabilities. 

While the organization is the state’s largest abortion provider, abortions make up a relatively small amount of its services, less than 10% annually. The bulk of patient visits are for contraceptive care, sexually transmitted infection testing and treatment, cancer screenings and other primary care check ups.

Federal law already prohibits using federal dollars for abortions except in extremely limited circumstances.

Hicks did not say how many or which Planned Parenthood clinics may be at risk of closure or service reductions. During a Los Angeles press conference Monday ahead of the court order, Hicks said “People in California should be so angry. This is a state where we have decided we value reproductive freedom.”

In 2022, two-thirds of California voters approved adding abortion rights to the state constitution.

Supported by the California Health Care Foundation (CHCF), which works to ensure that people have access to the care they need, when they need it, at a price they can afford. Visit www.chcf.org to learn more.