New York Attorney General Letitia James has joined a coalition of 21 other attorneys general and the state of Pennsylvania in filing a lawsuit to block a provision in the “One Big Beautiful Bill Act” (OBBA) that restricts Medicaid funding for non-profit health care clinics providing abortions. The attorneys general argue that this measure is aimed specifically at Planned Parenthood, the largest provider of reproductive health care in the country, because of its advocacy for abortion rights.
The OBBA, signed into law on July 4, bars Medicaid funding from going to clinics that receive a certain amount of Medicaid support and provide abortion services. According to Attorney General James and her counterparts, these criteria primarily affect Planned Parenthood clinics. They contend that millions of low-income individuals who depend on Planned Parenthood for services such as cancer screenings, sexually transmitted infection testing and treatment, and family planning could lose access to necessary care.
Attorney General James stated: “The federal government is once again playing politics with our health care system, with devastating consequences. This administration’s shameful and illegal targeting of Planned Parenthood will make it harder for millions of people to get the health care they need. New York will not be bullied into enforcing this unconstitutional attack on health care and reproductive freedom.”
Planned Parenthood plays a significant role in New York’s Medicaid provider network. In 2023, about 89,000 New Yorkers enrolled in Medicaid received services at Planned Parenthood clinics, including STI tests, cancer screenings, and contraceptive services. Removing this funding could impact access to these services for low-income residents, young people, and communities of color.
James and the coalition claim that states are placed in a difficult position by the new law: either exclude Planned Parenthood from Medicaid entirely—potentially leading to clinic closures—or cover those costs using only state funds while losing federal financial support.
They also argue that federal law already prohibits using Medicaid funds for abortion procedures. The attorneys general say legislative records show the intent behind OBBA was to defund Planned Parenthood specifically due to its support for abortion access.
The lawsuit claims several constitutional violations by the provision: retaliation against protected speech under the First Amendment; coercion under the Spending Clause by imposing unclear federal policy requirements; and violation of the Constitution’s ban on bills of attainder by singling out an organization without due process.
The group is seeking a court order declaring this section of OBBA unconstitutional and preventing its enforcement.
Other states joining New York in this legal action include California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington State, Wisconsin as well as the District of Columbia.
