A federal judge’s nationwide ruling has temporarily shielded New Mexico’s five Planned Parenthood health centers from losing Medicaid funding, protecting healthcare access for residents who rely on the program in a state where nearly 885,000 people are enrolled in Medicaid.
The preliminary injunction issued July 28 by U.S. District Judge Indira Talwani in Massachusetts blocks enforcement of a provision in President Donald Trump’s tax legislation that would have cut Medicaid reimbursements to Planned Parenthood clinics for one year. The ruling came after an initial July 7 order that protected only a limited number of clinics nationwide.
Gov. Michelle Lujan Grisham celebrated the court decision in a tweet Tuesday, calling it “a big deal for women’s health in our state.” The governor said in the tweet that Planned Parenthood “provides cancer screenings, STI testing, contraception and reproductive care to thousands of New Mexicans every year at little to no cost.”
The protection is significant for New Mexico, where Medicaid plays an outsized role in healthcare coverage. The state ranks among the top three nationally for the highest percentage of births covered by Medicaid, with the program financing approximately 62.3% of prenatal care benefits for resident births, according to federal data.
The legal battle stems from the “One Big Beautiful Bill Act” that Congress passed largely along party lines and Trump signed into law July 4.
The law prohibits Medicaid funding for one year to health care nonprofits that provide abortions and received more than $800,000 in federal funding in 2023. While the legislation does not explicitly mention Planned Parenthood, the provision was crafted to primarily target the organization.
Planned Parenthood Federation of America, along with affiliates in Massachusetts and Utah, sued the Trump administration within days of the law’s passage, arguing the measure violates their First Amendment and Due Process rights.
In her 58-page July 28 ruling, Judge Talwani found that Planned Parenthood would likely succeed in proving the law constitutes an unconstitutional “bill of attainder” that singles out the organization for punishment without a trial.
“Patients are likely to suffer adverse health consequences where care is disrupted or unavailable,” Talwani wrote. She noted that restricting Planned Parenthood’s 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.”
The judge said there was “ample evidence” that Congress “intended to punish Planned Parenthood,” citing the legislative history and lawmakers’ statements during debate.
Federal law already prohibits using Medicaid funds for abortions except in cases of rape, incest or when the mother’s life is endangered. The new restriction would have prevented patients from using Medicaid for any services at Planned Parenthood clinics, including contraception, cancer screenings and sexually transmitted infection testing.
New Mexico’s Planned Parenthood services are provided through Planned Parenthood of the Rocky Mountains, which operates health centers in Albuquerque, Santa Fe, Rio Rancho, Las Cruces and Farmington. The organization also provides virtual care services statewide.
Without the court protection, the funding cut could have threatened these operations in a state where healthcare access is already challenging. Gov. Lujan Grisham said in her tweet that “our rural areas already are facing healthcare shortages, and the GOP’s vote to gut Medicaid spending will only make it worse.”
The governor argued that “Planned Parenthood clinics are often the only accessible option for quality women’s healthcare” and criticized efforts to let “politics determine whether New Mexican women can access the safe, quality care they need.”
The Trump administration has appealed the court’s decision to the U.S. Court of Appeals for the 1st Circuit. The Department of Health and Human Services criticized the ruling in a statement, saying “states should not be forced to fund organizations that have chosen political advocacy over patient care.”
Planned Parenthood President and CEO Alexis McGill Johnson said in a statement that the organization would “keep fighting this cruel law” to ensure patients can continue accessing healthcare regardless of their insurance coverage.
The preliminary injunction remains in effect while the legal challenge proceeds through federal courts. Planned Parenthood had warned that without court intervention, nearly 200 of its 600 clinics nationwide could face closure, with more than 1 million patients potentially losing access to care.