Planned Parenthood Mar Monte announced the permanent closure of five clinics across Northern California—located in Gilroy, Santa Cruz, Madera, San Mateo, and South San Francisco—after federal Medicaid reimbursements were banned by the One Big Beautiful Bill, signed by President Trump on July 4, 2025. The bill prohibits Medicaid funding for health centers that both provide abortions and received more than $800,000 in federal reimbursements the previous year.
Planned Parenthood’s leadership called the law “a back‑door ban on abortion in reproductive freedom states,” arguing the loss of funding forced the clinic closures and the elimination of three core services. The organization estimates an annual loss of $100 million in Medicaid reimbursements under the new law.
A federal district judge issued a preliminary injunction blocking enforcement of the ban against affiliates that either did not provide abortions or received less than $800,000 in Medicaid payments during 2023. That exemption does not include any Planned Parenthood clinics in California.
Republican lawmakers championed the One Big Beautiful Bill as a necessary move to end federal subsidies to abortion providers, capturing significant conservative policy goals. But critics warn the loss of health services disproportionately impacts Medicaid‑dependent, low‑income patients and destabilizes local health infrastructure.
Representative Jimmy Panetta (D‑CA) pledged to pursue state and legal interventions to keep affected clinics open. Planned Parenthood has filed lawsuits challenging the funding ban and its constitutionality, arguing it violates equal protection and due process principles.
