Planned Parenthood has filed a lawsuit against the Trump administration in response to a newly signed law that strips Medicaid funding from providers that also offer abortion services.

The law, known as the “Big Beautiful Bill,” was passed by Congress and signed by President Donald Trump on July 4. It includes a provision barring Medicaid funds from going to organizations that perform abortions, even if those funds are used for other medical services. 

Originally proposed as a 10-year funding block, the restriction was ultimately limited to one year.

In response, Planned Parenthood Federation of America alleges the provision unlawfully “targets” its organization and violates the Constitution.

“If this ‘defund’ is allowed to stand, it would have devastating consequences for the more than 1 million patients who use Medicaid as their insurance at Planned Parenthood health centers across the country to get birth control, cancer screenings, and more,” Planned Parenthood claimed. “If this unconstitutional law is not stopped, the consequences will be nothing short of a public health crisis.” 

Planned Parenthood, the nation’s largest abortion provider, performed over 400,000 abortions in the 2023–24 fiscal year. The organization receives $700 million annually in government reimbursements and grants, accounting for 39 percent of its total revenue.

According to a report by The Guardian, more than 20 Planned Parenthood clinics have shut down since Trump took office. The group has warned that if the law remains in effect, it may be forced to close almost 200 clinics across 24 states. There are nearly 600 Planned Parenthood centers across the country.

“The true design of the Defund Provision is simply to express disapproval of, attack, and punish Planned Parenthood, which plays a particularly prominent role in the public debate over abortion,” the group said.

However, anti-abortion advocates have applauded the bill’s language regarding funding cuts for abortion providers.

“Planned Parenthood’s desperation is showing as they run to the courts again to fix a crisis of their own making,” said Katie Daniel, Susan B. Anthony’s Pro-Life America director of legal affairs and policy counsel, according to CNN. 

The lawsuit comes as the organization has also been a part of another legal battle with the trump administration over cuts to a federal teen pregnancy prevention program. The Trump administration has made changes to the program to limit language regarding diversity, equity, and inclusion.