Congress blocked large family-planning clinics that offer abortions from billing Medicaid for one year, starting July 2025. Thirteen months later, Planned Parenthood’s budgetary reality remains complicated.

Last year’s federal ban on using Medicaid to pay Planned Parenthood might have ended, but its funding has not automatically resumed nationwide.

On July 4, 2025, President Donald Trump’s “One Big Beautiful Bill Act” barred federal Medicaid reimbursements for one year to nonprofit family planning organizations that both provide abortions and received more than $800,000 in Medicaid reimbursements between October 2022 and September 2023. 

The Hyde Amendment already prohibits Medicaid coverage of abortion with rare exceptions; the 2025 provision blocked reimbursement for other preventive care services Medicaid normally covers, like contraception, cancer screenings, STI testing and treatment, and annual exams.

The law never named Planned Parenthood. However, its criteria were so narrow that, as the organization argued in court, they seemed written to target the reproductive health-care giant. Only two other family-planning chains—Maine Family Planning and Health Imperatives, in Massachusetts—lost their funding. 

Officially, these organizations can once again bill Medicaid for covered services. But when I scanned the states to see the status of Planned Parenthood’s federal funding, I found a more complicated budgetary reality. Its affiliate clinics have resumed billing for Medicaid-covered reproductive health-care services in many places—but in other states, GOP lawmakers are finding new ways to starve it of cash.

States have threatened Medicaid coverage, some successfully

After a year-long hiatus, standard federal Medicaid reimbursement should have automatically resumed in about three dozen states, based on a June 2026 report by the health policy research nonprofit KFF. These include the 11 Democrat-led states that spent their own funds to keep affected clinics open—among them California, Connecticut, Illinois, and Maine. 

My research shows that........

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