Oregon AG sues Trump admin over law limiting Medicaid reimbursements to Planned Parenthood

Published 3:40 pm Wednesday, July 30, 2025

Oregon Attorney General Dan Rayfield is suing the federal government over a provision in Congressional Republicans’ massive tax and spending law that prevents Planned Parenthood from receiving Medicaid reimbursements for health care services at its clinics.

Oregon’s 12 Planned Parenthood health centers rely on more than $16.7 million in annual Medicaid reimbursements to cover over 51,000 patient visits. Nearly 60% of all Oregon Planned Parenthood patients depend on Medicaid for care such as cancer screenings, birth control and STI testing.

Without Medicaid reimbursements, many Planned Parenthood clinics across the U.S. may be forced to close or reduce services — a move that would disrupt preventative care and raise health care costs nationwide, according to a press release from Rayfield’s office.

Oregon is joining a coalition of 22 other state plaintiffs in the lawsuit filed Tuesday that lists U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services Administrator Mehmet Oz as defendants.

The states allege the bill’s provision violates the constitutional protections of freedom of speech and association and unconstitutionally inflicts punishment and targets Planned Parenthood when they would otherwise have judicial protections.

“Defunding Planned Parenthood is not about fiscal responsibility—it’s about targeting health care providers that some politicians don’t like,” Rayfield said in the release. “Planned Parenthood is where thousands of Oregonians go for cancer screenings, contraception and basic medical care. Pulling Medicaid funding doesn’t make that need disappear, it just makes it harder for people to stay healthy.”

Dr. Sara Kennedy, the president and CEO of Planned Parenthood Columbia Willamette, said she is grateful Oregon joined the lawsuit.

“This law is a targeted attack on Planned Parenthood and the millions of patients — including tens of thousands in Oregon — who rely on Planned Parenthood health care services,” she said in the news release.

Amy Handler, president and CEO of Planned Parenthood Southwestern Oregon, called the provision dangerous and unnecessary.

“The Trump administration and its backers in Congress are trying to make it harder to access care — meaning cancers will go undetected, STIs will go untreated and patients won’t get the birth control or abortion care they need to plan their families and futures,” she said. “We look forward to working closely with the attorney general’s office to protect access to care.”

This is at least the third federal lawsuit filed against the Trump administration over the tax bill’s provision restricting Medicaid reimbursements to reproductive and sexual health centers. On Monday, a federal judge granted a new block on the provision, ultimately allowing Planned Parenthood affiliates to continue receiving Medicaid funding.