Planned Parenthood closes 5 CA clinics due to loss of Medicaid funding

 July 26, 2025

In a significant move affecting reproductive health services, Planned Parenthood Mar Monte is closing five of its clinics in Northern California.

This shutdown on the part of Planned Parenthood was triggered by a new Trump-backed federal law that eliminated Medicaid funding for these clinics, as the Daily Wire reports.

Designed as a cost-saving measure, this regulation forms part of a broader bill famously dubbed the "Big Beautiful Bill" by President Donald Trump. Signed into law on July 4, the legislation redefines eligibility for Medicaid reimbursements. Specifically, it impacts providers like Planned Parenthood that received over $800,000 in Medicaid funds the previous year.

Impact of legislation spreads

The closure affects clinics in five cities: San Francisco, San Mateo, Gilroy, Santa Cruz, and Madera. These facilities have been pivotal in providing reproductive and health services within their communities.

This loss of funding prompted the layoffs of more than 60 staff members who played various roles in health service delivery at these locations.

The broader implications of these closures are seen as a part of a wave of similar shutdowns across other states like New York, Minnesota, Illinois, Texas, and Utah.

Stacy Cross, the CEO of Planned Parenthood Mar Monte, expressed the severity of the situation, stating, "We really feel like we are in the fight of our life," highlighting the unprecedented challenges they face due to this legislation.

Funding dries up

Previously, federal law prohibited Medicaid funds from being used for abortions except under extreme circumstances like endangerment to the mother's life.

However, under the new bill, this prohibition has been extended to cut off funding for any health services provided by organizations like Planned Parenthood that also offer abortions.

"This law is clearly a back-door ban on abortion in reproductive freedom states," the organization stated, framing the bill as an indirect means to restrict access to abortion services under the guise of financial regulation.

Planned Parenthood subsequently initiated legal action against the Trump administration, securing a temporary restraining order from an Obama-appointed judge. Unfortunately for Planned Parenthood, this order was lifted shortly after its issuance.

Debate persists

The White House has defended the bill, stating in a fact sheet that it "protects and strengthens Medicaid for those who rely on it," targeting pregnant women, children, seniors, and people with disabilities, while also clamping down on perceived abuses within the system.

Nonetheless, critics, including several health policy analysts, argue that the fallout disproportionately affects vulnerable populations who rely on Planned Parenthood for essential health services beyond abortion, such as cancer screenings and prenatal care.

With only 10 clinics now eligible for Medicaid reimbursements under a narrow preliminary injunction, the future of many Planned Parenthood services hangs in the balance, affecting thousands of residents throughout the affected regions.

What's next for Planned Parenthood?

This series of events marks a critical point for Planned Parenthood's operations across the country.

As regional and national dialogues continue, the reactions from communities and politicians will likely shape the future of healthcare policy in these pivotal areas.

Cross alluded to the significant impact of these closures, reflecting on her long tenure with the organization: "I’ve been a Planned Parenthood CEO for 24 years at three separate affiliates, and I can tell you this is really the hardest it’s been in my entire life."

As legal battles progress and public opinion potentially shifts, both supporters and opponents of the bill watch closely to see how the balance between governmental budget constraints and healthcare provision is managed.

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