A federal judge on Monday ruled Planned Parenthood clinics nationwide, including in Vermont, must continue to be reimbursed for Medicaid funding as the nation's largest abortion provider fights President Donald Trump's administration over efforts to defund the organization in his signature tax legislation.
The new order replaces a previous edict handed down by U.S. District Judge Indira Talwani in Boston last week. Talwani initially granted a preliminary injunction specifically blocking the government from cutting Medicaid payments to Planned Parenthood members that didn't provide abortion care or didn't meet a threshold of at least $800,000 in Medicaid reimbursements in a given year.
That ruling did not apply to any health centers in New England.
“We haven’t been paid since this bill was signed into law on July 3rd,” said Jessica Barquist, with the Planned Parenthood of Vermont Action Fund.
In Vermont, about one-quarter of the roughly 16,000 patients that get care at Planned Parenthood health centers are covered by Medicaid. The organization stands to lose $2.3 million in federal revenue a year from lost Medicaid payments and federal grants for family planning and preventative health services.
Leaders of the organization have said they were considering limiting the care provided to Medicaid patients to avoid closing health centers, a scenario that Talwani said she wanted to avoid nationally.
"Patients are likely to suffer adverse health consequences where care is disrupted or unavailable," Talwani wrote in her Monday order. "In particular, restricting Members' ability to provide healthcare services threatens an increase in unintended pregnancies and attendant complications because of reduced access to effective contraceptives, and an increase in undiagnosed and untreated STIs."
A provision in Trump's tax bill instructed the federal government to end Medicaid payments for one year to abortion providers that received more than $800,000 from Medicaid in 2023, even to those like Planned Parenthood that also offer medical services like contraception, pregnancy tests and STD testing.
Although Planned Parenthood is not specifically named in the statute, which went into effect July 4, the organization's leaders say it was meant to affect their nearly 600 centers in 48 states. However, a major medical provider in Maine and likely others have also been hit.
In her Monday order, Talwani said that the court was "not enjoining the federal government from regulating abortion and is not directing the federal government to fund elective abortions or any healthcare service not otherwise eligible for Medicaid coverage." Instead, Talwani said that her decision would block the federal government from excluding groups like Planned Parenthood from Medicaid reimbursements when they have demonstrated a substantial likelihood of success in their legal challenge.
In its lawsuit, Planned Parenthood had argued that they would be at risk of closing nearly 200 clinics in 24 states if they are cut off from Medicaid funds. They estimated this would result in more than 1 million patients losing care.
"We're suing the Trump administration over this targeted attack on Planned Parenthood health centers and the patients who rely on them for care," said Planned Parenthood's president and CEO Alexis McGill Johnson in a statement on Monday. "This case is about making sure that patients who use Medicaid as their insurance to get birth control, cancer screenings, and STI testing and treatment can continue to do so at their local Planned Parenthood health center, and we will make that clear in court."
The lawsuit was filed earlier this month against Health and Human Services Secretary Robert F. Kennedy Jr. by Planned Parenthood Federation of America and its member organizations in Massachusetts and Utah.
A health department spokesperson reiterated Monday that the agency strongly disagreed with the judge's order, repeating previous arguments that her decision "undermines state flexibility and disregards longstanding concerns about accountability."
"States should not be forced to fund organizations that have chosen political advocacy over patient care," said the department's communication director, Andrew Nixon, in an email.
Barquist, with the Planned Parenthood of Vermont Action Fund, said she expects more legal challenges from the Trump administration that could again stop the flow of Medicaid dollars.
“That could happen within days, within weeks, who knows.”
In a separate lawsuit, Vermont and 23 other states sued the Trump administration on Tuesday over the provision blocking Medicaid funding to Planned Parenthood. It was Vermont Attorney General Charity Clark's 26th case against the administration.
Vermont Public's Lexi Krupp contributed to this story.
