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California Pledges $140 Million to Keep Planned Parenthood Clinics Open

The move backfills Medicaid losses after a federal spending law cut reimbursements to providers that offer abortions.

Overview

  • Governor Gavin Newsom said the state investment is intended as a temporary lifeline to sustain roughly 109 Planned Parenthood sites and preserve access to core services.
  • New York Governor Kathy Hochul said the state will replace about $35 million in lost Medicaid reimbursements for one year as states deploy stopgaps.
  • A summer congressional spending law blocked Medicaid payments to entities that provide abortions, and a federal appeals court left the cuts in place last month as lawsuits continue.
  • California affiliates have already closed five clinics and will end primary care in Orange and San Bernardino counties in December, affecting about 13,000 patients and triggering layoffs.
  • State leaders signaled plans to pursue additional resources in 2026, while Planned Parenthood warns of a looming financial cliff without sustained funding beyond this stopgap.