Medicaid Funding Ban for Planned Parenthood: State Responses & Updates (2026)

The landscape of reproductive healthcare access shifted significantly in late 2025 with the enactment of Section 71113 of the 2025 Federal Budget Reconciliation Law. This provision blocks federal Medicaid payments for one year to certain reproductive health care providers who also offer abortion services, including Planned Parenthood affiliates, Maine Family Planning, and Health Imperatives. While legal challenges to the law are ongoing, the funding ban is currently in effect, creating a gap in care for Medicaid enrollees who rely on these providers. Several states have stepped forward to mitigate the impact, committing state funds to ensure continued access to reproductive health services, but a patchwork of coverage is emerging across the country.

Planned Parenthood’s Central Role in Family Planning Services

Planned Parenthood plays a substantial role in providing family planning services nationwide, operating health centers in 46 states and the District of Columbia and serving over 2 million patients annually. Over half of Planned Parenthood’s patients utilize Medicaid for their health coverage. A KFF analysis found that nearly one in five (18%) Medicaid enrollees received their contraceptive care from a Planned Parenthood clinic in 2023. This reliance is particularly pronounced in states like California and Wisconsin, where nearly half and one-third of female Medicaid enrollees obtaining contraceptive care, respectively, turn to Planned Parenthood clinics. These clinics often serve as the sole providers of sexual and reproductive health care in rural or medically underserved communities, offering essential services like contraception, cancer screenings, and STI testing and treatment. Research indicates that excluding these providers from Medicaid reimbursement would significantly hinder access to care for Medicaid enrollees.

State Responses to the Federal Funding Ban

Recognizing the potential disruption to care, a number of states have taken action to fill the funding gap created by Section 71113. Eleven states – California, Colorado, Connecticut, Illinois, Massachusetts, Maine, New Jersey, New Mexico, New York, Oregon, and Washington – have allocated millions in state funds to Planned Parenthood and other affected providers. These responses vary, ranging from covering the full cost of Medicaid services to providing a specific amount of funding for the year. The states taking action are also all plaintiffs in the ongoing litigation challenging the federal law.

California

California Governor Newsom announced a plan in October 2025 to allocate over $140 million in state funds to assist Planned Parenthood health centers. With over 100 health centers operated by seven Planned Parenthood affiliates, California serves a large population reliant on public health insurance programs like Medi-Cal and the Family Planning, Access, Care and Treatment Program (FPACT). KFF estimates that in 2023, 47% of California female Medicaid recipients who sought contraceptive care did so at a Planned Parenthood clinic. Further bolstering support, Governor Newsom signed legislation in February 2026 allocating an additional $90 million in emergency funding to Planned Parenthood and other reproductive health care providers.

Colorado

Colorado’s response, formalized in Senate Bill 25B-2, takes a different approach. The legislation doesn’t specify a dollar amount but asserts that the state will reimburse organizations designated as “prohibited entities” under the federal law using state funds. This guarantees continued state funding for Planned Parenthood clinics serving Medicaid enrollees.

Connecticut

Connecticut Governor Lamont announced an allocation of $8.5 million in December 2025 to Planned Parenthood of Southern New England to offset the loss of federal Medicaid reimbursement.

Illinois

In December 2025, the Illinois Department of Healthcare and Family Services announced a $4 million investment in Medicaid family planning services to mitigate the impact of Section 71113. This investment aims to cover the $4 million in federal Medicaid reimbursement Planned Parenthood received in 2024 for services like contraception and STI treatment.

Massachusetts

Massachusetts Governor Healey announced a $2 million allocation to Planned Parenthood League of Massachusetts in July 2025. Although, this amount is not sufficient to fully replace the approximately $4.7 million in Medicaid payments the organization received in 2023. Notably, Massachusetts has not allocated funds to Health Imperatives, another reproductive health provider affected by the ban.

Maine

Maine’s legislature proactively passed legislation (LD 143 and LD210) before Section 71113 took effect, allocating over $6 million to family planning providers, including Planned Parenthood of Northern New England and Maine Family Planning. In January 2026, Governor Mills proposed an additional $2.25 million in supplemental funding to further offset the impact of the federal law, pending legislative approval.

New Jersey

New Jersey allocated $8 million in December 2025 to cover both the state and federal Medicaid reimbursements that Planned Parenthood would have received without Section 71113. In 2023, Planned Parenthood affiliates in New Jersey billed over $23.8 million to New Jersey’s Medicaid program.

New Mexico

New Mexico Governor Grisham signed emergency legislation in October 2025 allocating $3 million to contract with Planned Parenthood for health services provided to Medicaid patients. Any unexpended funds will revert to the general fund at the end of fiscal year 2026.

New York

New York Governor Hochul announced in October 2025 that the state would cover any funding gap experienced by Planned Parenthood due to Section 71113. The state has instructed Medicaid providers to continue submitting claims, which will be paid using state funds only.

Oregon

Oregon allocated $7.5 million to Planned Parenthood affiliates in November 2025 to address the funding shortfall. Planned Parenthood of Columbia Willamette received over $15 million in state and federal Medicaid dollars in 2024.

Washington

Washington Governor Ferguson announced in July 2025 that the state would cover any gap in Medicaid funds for Planned Parenthood. The state paid over $23.8 million to Planned Parenthood in 2023, with $11.8 million coming from the federal government.

Ongoing Litigation and Future Outlook

While these state-level interventions provide a crucial safety net for many Medicaid enrollees, the long-term impact of Section 71113 remains uncertain. Legal challenges to the provision are ongoing, and a final decision on the merits of these cases may not come until after July 2026, when the one-year funding ban is scheduled to expire. In the interim, Planned Parenthood affiliates have, in some cases, offered services to Medicaid beneficiaries on a free or reduced-fee basis, but the organization has stated that these efforts are unsustainable in the long run. Planned Parenthood covered an estimated $45 million in care for Medicaid patients in September 2025, but this is not a viable long-term solution.

The situation highlights the complex interplay between federal and state policies in shaping access to reproductive healthcare. The actions taken by these eleven states demonstrate a commitment to protecting access to care for their residents, but the broader implications of Section 71113 will depend on the outcome of the legal challenges and the willingness of other states to follow suit. Continued monitoring of state legislative action and court decisions will be essential to understanding the evolving landscape of reproductive healthcare access in the United States.