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Planned Parenthood faces major funding loss under new federal budget bill

by LJ News Opinions
July 5, 2025
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Planned Parenthood of Orange and San Bernardino Counties said it may be forced to scale back health services following the passage of a federal budget bill that bars Medicaid reimbursements to the organization. The Trump-backed federal budget package, has been described by the local affiliate as an effective “defunding” of Planned Parenthood.

Krista Hollinger, president and CEO of Planned Parenthood of Orange and San Bernardino Counties, issued a statement Friday condemning the legislation and warning of the impact on the region’s reproductive health services.

“Congress, under the influence of President Trump, has passed a budget bill that effectively ‘defunds’ Planned Parenthood,” Hollinger said in a statement. “Once signed, this means that [our affiliate] will no longer be able to get reimbursed with federal dollars through the Medicaid program for all the essential health services we provide, simply because we provide abortion as a small but important part of our healthcare services.”

While federal law through the Hyde Amendment already prohibits Medicaid funds from being used for abortion services, Hollinger emphasized that the new bill prevents the organization from receiving reimbursements for other services it provides, including birth control, cancer screenings, STI testing and treatment, and primary care.

“For Planned Parenthood, Medicaid exclusion means that we will lose roughly 50 percent of our revenue,” she said. “As a result, we will be forced to make difficult operational decisions in order to maintain our mission and keep serving our patients.”

The Orange and San Bernardino Counties affiliate serves approximately 130,000 patients annually. Officials warned that without Medicaid reimbursements, many of those individuals, particularly low-income and underserved patients, may face reduced access to health services.

Hollinger framed the legislation as a political maneuver rather than a fiscal one. “Defunding Planned Parenthood is not about balancing the country’s budget,” she said. “This is a blatant attack on healthcare access for people who need it the most, and a backdoor attempt to block people from accessing abortion.”

Despite the uncertainty ahead, the organization said it remains committed to providing reproductive health services and legal abortion care in California.

“This fight is far from over, but we have difficult days ahead,” Hollinger said. “Because we are losing the federal funding that makes up a large part of our financial foundation, we may have some hard choices to make.”

Planned Parenthood said it is exploring budgetary solutions to preserve care for as many patients as possible and is calling on supporters to help sustain services during what it described as a critical moment for health care access in the region.



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