Planned Parenthood of Wisconsin announced that it would resume giving abortion care at its facilities Monday after service was paused due to Medicaid budget cuts resulting from US President Trump’s “One Big Beautiful Bill” Act.
On September 29, the Department of Health and Human Services stated that “family planning organizations could continue billing Medicaid by relinquishing their tax-exempt status or relinquishing their Essential Community Provider status.”
Section 156.235 of the Code of Federal Regulations defines “Essential Community Providers” as services for patients who are low-income or in an area with a healthcare professional shortage. However, Trump’s July bill created a “prohibited entities” subcategory that excludes Planned Parenthood organizations from claiming tax-exempt status while receiving Medicaid funding. By relinquishing its status as a Essential Community Provider, Planned Parenthood can resume billing Medicaid.
In July, a coalition of 23 attorneys general filed a complaint against the Department of Health and Human Services, arguing that Section 71113 of the One Big Beautiful Bill Act is unconstitutional because it ambiguously defines a “prohibited entity.” Section 71113 provides that “no federal funds shall be used to make payments to a prohibited entity for services furnished during the 1-year period beginning on the date of the enactment of this Act.” The provision defines a prohibited entity as “an entity primarily engaged in family planning services, such as abortions.”
Plaintiffs argued that the provision violates the First and Fifth amendments of the Constitution and specifically targets Planned Parenthood providers. The court granted a preliminary injunction that lasted for 14 days.
“We’ve stood up to relentless attacks on reproductive health for decades—and we are not backing down now. Our patients deserve nothing less,” said Tanya Atkinson, president and CEO of Planned Parenthood of Wisconsin.