Health Law Daily Wrap Up, MEDICAID—D. Mass.: Planned Parenthood dismisses challenge to OBBBA’s Medicaid defunding provision, (Feb 3, 2026)

By Sheila Lynch-Afryl, J.D., M.A.

The First Circuit reversed the district court’s preliminary injunctions in December.

Planned Parenthood dismissed its challenge to the One Big Beautiful Bill Act (OBBBA), Pub. L. No. 119-21 (2025), provision that blocks Medicaid funding for Planned Parenthood facilities after the First Circuit allowed the federal government to enforce the provision. In a press release, the organization noted, “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” (Planned Parenthood Federation of America, Inc. v. Kennedy, No. 1:25-cv-11913 (D. Mass. Jan. 30, 2026)).

Section 71113 of the OBBBA prohibits federal Medicaid funding from July 4, 2025 through July 4, 2026 for entities, including their affiliates, subsidiaries, successors, and clinics, that received more than $800,000 in Medicaid reimbursements during fiscal year 2023 and, as of October 1, 2025: (1) are nonprofit; (2) are essential community providers “primarily engaged in family planning services, reproductive health, and related medical care”; and (3) provide abortions, with exceptions for pregnancies that endanger the life of the woman or result from rape or incest.

The District of Massachusetts issued preliminary injunctions on July 21 and July 28 prohibiting enforcement of section 71113 against most Planned Parenthood facilities, finding violations of the First Amendment, the Equal Protection Clause, and the Bill of Attainder Clause. However, in December the First Circuit reversed the court’s preliminary injunctions, concluding that the facilities failed to demonstrate a substantial likelihood of success on the merits of their claims, and remanded the case to the district court.

A Maine family planning provider affected by section 71113 also recently dismissed its appeal. Maine Family Planning, which alleged it was “collateral damage” to the provision’s attempt to defund Planned Parenthood, appealed to the First Circuit after the District of Maine declined to block enforcement of the provision. In December, after the First Circuit’s Planned Parenthood decision, Maine Family Planning moved for stipulated dismissal.

One other case challenging section 71113 remains pending on appeal in the First Circuit. The federal government appealed the District of Massachusetts’ decision preliminarily enjoining enforcement of section 71113 against 23 states. The appeal is pending, and the government’s opening brief is due March 20.

The case is . No. 25-cv-11913.

Attorneys: Alan E. Schoenfeld (Wilmer Cutler Pickering Hale and Dorr LLP) for Planned Parenthood Federation of America, Inc., Planned Parenthood League of Massachusetts and Planned Parenthood League of Utah. Emily Margaret Hall, U.S. Attorney's Office, for Robert F. Kennedy, Jr., U.S. Department of Health and Human Services, Mehmet Oz and Centers for Medicare & Medicaid Services.

Companies: Planned Parenthood Federation of America, Inc.; Planned Parenthood League of Massachusetts; Planned Parenthood League of Utah

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