A federal appeals court ruled Friday that a provision of President Donald Trump’s signature tax and domestic policy law cutting Medicaid funding to Planned Parenthood entities that perform abortions does not constitute unconstitutional punishment.

The Boston based 1st U.S. Circuit Court of Appeals overturned a preliminary injunction issued in July by U.S. District Judge Indira Talwani, who had found the law likely violated the Constitution by targeting Planned Parenthood health centers, Reuters reported.

The appeals court allowed the provision to take effect in September while it reviewed the Trump administration’s appeal of Talwani’s ruling.

Planned Parenthood has said at least 20 health centers have closed since Trump signed the measure into law in July.
Talwani has since blocked enforcement of the law in a separate case brought by 22 Democratic led states and the District of Columbia, though the appeals court temporarily stayed that ruling while it considers whether to lift the injunction.

Alexis McGill Johnson, president of Planned Parenthood Federation of America, said Friday’s decision allows the administration to restrict access to care.
“This ruling enables the Trump administration’s attempts to block access to care for patients most in need and force Planned Parenthood health centers to the financial brink,” Johnson said in a statement.

The dispute centers on a provision of the One Big Beautiful Bill Act, passed by the Republican led Congress, that bars Medicaid funding for nonprofit organizations that provide family planning services if they perform abortions and received more than $800,000 in Medicaid funds during the 2023 fiscal year.