A federal appeals court on Friday reversed two earlier court orders that had blocked a new federal rule cutting Medicaid funding for certain Planned Parenthood clinics, a decision that could have implications for patients and clinics in Washington state.
The ruling from the First U.S. Circuit Court of Appeals centers on a 2025 federal law that pauses Medicaid funding for one year for nonprofit health providers that both offer abortion services and received more than $800,000 in Medicaid payments in 2023.
The criteria mainly affect Planned Parenthood affiliates across the country.
Washington is among the states where Planned Parenthood serves large numbers of Medicaid patients, and state officials — including Attorney General Nick Brown — joined a coalition supporting Planned Parenthood in the case.
Several Washington local governments, including the City of Bellingham and a Tacoma councilmember, also signed onto supporting briefs, arguing the law could disrupt essential reproductive health services.
Why the ruling matters in Washington
Planned Parenthood clinics in Washington provide services ranging from birth control and cancer screenings to STI testing and abortion.
A significant share of their patients are covered by Medicaid, according to court records, meaning a temporary loss of federal reimbursement could affect clinic operations or patient access.
The law does not stop clinics from providing any services, but it could mean they would have to do so without Medicaid reimbursement for a year unless they stopped providing abortion care.
What the appeals court decided
In its decision, the appeals court ruled that the lower court went too far when it blocked the law nationwide. Judges found:
- The funding cutoff does not qualify as unconstitutional “punishment,” which would make the law a forbidden bill of attainder.
- The law likely does not force clinics to break ties with national Planned Parenthood organizations, as feared. The judges said the statute should be interpreted narrowly so that only affiliates with shared corporate control fall under the same restrictions.
- The law is likely constitutional under basic equal-protection standards because Congress can choose how federal Medicaid money is distributed.
Because of those findings, the court allowed the law to move forward while the case continues.
What’s next for Washington
The Centers for Medicare & Medicaid Services has not yet applied the funding restrictions to any Planned Parenthood affiliate, meaning no immediate change for Washington patients.
However, the ruling clears the way for the federal government to begin enforcing the law.
Washington leaders who joined the case say they are watching closely for any disruption to health services, particularly for low-income residents who rely on Medicaid for reproductive care.
Planned Parenthood affiliates could still pursue further legal options, including a possible appeal.
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