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Supreme Court Upholds States' Authority to Restrict Planned Parenthood Funding

Emily Oster
By Emily OsterJun 27, 2025
Read time3 min

In a landmark decision, the U.S. Supreme Court has affirmed the right of individual states to cease Medicaid reimbursements to Planned Parenthood. This 6-3 ruling, handed down on June 26, marks a significant shift in healthcare policy and could lead to the closure of a substantial portion of Planned Parenthood facilities across the nation, irrespective of the legality of abortion in those states. The case originated from South Carolina's 2018 attempt to defund the organization, asserting that all funds, even those for non-abortion services, indirectly support abortion. This outcome raises critical questions about access to reproductive healthcare and the future of family planning services, particularly for low-income individuals in underserved communities.

The dispute, officially known as Medina v. Planned Parenthood South Atlantic, began when South Carolina Governor Henry McMaster directed the state’s Department of Health and Human Services to discontinue Medicaid payments to Planned Parenthood. Governor McMaster contended that despite Medicaid regulations already prohibiting funding for abortion procedures, any financial support provided to Planned Parenthood indirectly facilitated abortion services. A patient of Planned Parenthood in South Carolina, Julie Edwards, subsequently initiated legal action, seeking to preserve her access to gynecological care at the organization’s clinics. However, the Supreme Court determined that Ms. Edwards lacked the legal standing to pursue her claim.

Justice Neil Gorsuch, writing for the majority, based the Court's opinion on a specific interpretation of the Medicaid Act. This federal law stipulates that patients are entitled to receive care from “any qualified provider.” The Court’s majority concluded that this particular phrasing did not explicitly convey Congress’s “intent to confer individual rights,” thereby denying Ms. Edwards the standing to sue. This interpretation has broad implications for patient advocacy and the enforcement of federal healthcare provisions.

Conversely, Justice Ketanji Brown Jackson, joined by Justices Sonia Sotomayor and Elena Kagan in their dissenting opinion, argued that the majority’s decision contradicted Congress's clear intent to allow Medicaid recipients the freedom to choose their healthcare providers. Justice Jackson asserted that the ruling “thwarts Congress’s will twice over: once, in dulling the tool Congress created for enforcing all federal rights, and again in vitiating one of those rights altogether.” This dissent underscores concerns about the erosion of patient autonomy and the legislative intent behind federal healthcare programs.

This ruling essentially paves the way for South Carolina, and any other state choosing to follow suit, to cut off all funding to Planned Parenthood for a wide array of essential services. These services include, but are not limited to, vital cancer screenings, accessible birth control, comprehensive STI testing, and crucial preventative care. The potential impact on public health, particularly for vulnerable populations who rely on these services, is substantial. Alexis McGill Johnson, President and CEO of the Planned Parenthood Federation of America, expressed deep concern, stating that the decision aligns with politicians who prioritize their own beliefs over patient well-being and healthcare autonomy. She emphasized the critical need for access to services like birth control, cancer screenings, and STI treatment, reaffirming Planned Parenthood’s commitment to continue providing care despite ongoing legislative challenges and efforts to defund the organization nationwide.

This judicial outcome follows previous actions by the Trump administration, which also withheld millions in Title X funding from Planned Parenthood facilities. A significant majority of Planned Parenthood health centers, approximately 76%, are strategically located in rural or medically underserved regions. For about 41% of their patient demographic, who predominantly live at or below the federal poverty line, Planned Parenthood services represent their sole source of medical care. The cumulative effect of these funding restrictions is expected to disproportionately affect these underserved communities, potentially creating significant gaps in healthcare access and exacerbating existing health disparities.

Emily Oster
authorBy Emily Oster

Economist and author who uses data-driven approaches to tackle parenting decisions.

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