Planned Parenthood drops lawsuit challenging Trump administration's Medicaid cuts

Planned Parenthood announced it is voluntarily dropping its lawsuit challenging the Trump administration’s ability to withhold Medicaid payments under a provision in President Donald Trump’s tax bill.

The organization sued in July after President Donald Trump signed a spending bill that included prohibiting federal funding from going to abortion providers, a section of the legislation that Planned Parenthood attorneys argued unfairly targeted their clinics and would leave patients with even fewer health care options.

In December, a federal appeals court ruled that the administration could continue to withhold Medicaid funding from Planned Parenthood and other abortion providers.

A separate lawsuit filed by a group of mostly Democratic states suffered a similar setback in January but remains ongoing, and a related case filed in Maine was voluntarily dismissed in October.

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A third lawsuit filed in Maine by a network of medical clinics that was also impacted by the spending bill was voluntarily dismissed in October.

Planned Parenthood moved on Friday to voluntarily dismiss the lawsuit in the U.S. District Court of Massachusetts.

"The goal of this lawsuit has always been to help Planned Parenthood patients get the care they deserve from their trusted provider. Based on the 1st Circuit’s decision, it is clear that this lawsuit is no longer the best way to accomplish that goal," the Planned Parenthood Federation of America, Planned Parenthood League of Massachusetts and Planned Parenthood Association of Utah said in a joint statement.

Under the tax provision in Trump's spending bill, Medicaid payments would be stopped if providers like Planned Parenthood primarily offered certain services, including abortion, and received more than $800,000 from Medicaid in 2023.

Planned Parenthood was not specifically named in the legislation, but the organization’s leaders have said the law is intended to affect their clinics across the country, as Republicans at the federal and state level continue to target the organization.

Federal law bans taxpayer money from covering most abortions, but many Republicans have long argued that abortion providers such as Planned Parenthood used Medicaid money for other health services to subsidize abortion.

Planned Parenthood said 23 of their health clinics have been forced to close due to Trump's spending bill. More than 50 clinics closed in 18 states last year, with most located in the Midwest.

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"President Trump and his allies in Congress have weaponized the federal government to target Planned Parenthood at the expense of patients — stripping people of the care they rely on," Alexis McGill Johnson, president and CEO of Planned Parenthood Federation of America, said in a statement.

"Through every attack, Planned Parenthood has never lost sight of its focus: ensuring patients can get the care they need from the provider they trust," she continued. "That will never change. Care continues, as does our commitment to fighting for everyone’s freedom to make their own decisions about their bodies, lives, and futures."

The Associated Press contributed to this report.