One-Year Ban on Abortion Providers Billing Medicaid for Other Services Expires

A one-year ban on abortion providers billing Medicaid for non-abortion services expired on July 5 after its inclusion in the One Big Beautiful Bill Act signed by President Trump. House Republicans released a $95 billion reconciliation 3.0 framework this week that omitted any measure to restrict Medicaid funds from reaching abortion providers.

The framework instead allocates money for defense, farm aid, and grants to encourage voting restrictions.

The Congressional Budget Office had determined that the earlier defunding provision would have increased federal spending by $52 million over 10 years. Federal law already bars direct use of Medicaid funds for abortion procedures while permitting payments for services such as contraception and STI screening. Republicans’ prior reconciliation effort had also excluded the restriction.

Gavin Oxley, media relations manager at Americans United for Life, said the omission represented a missed opportunity. “Abortion defunding is the ideal offset, saving hundreds of millions in unethical spending year over year,” he stated. Nora Walsh-DeVries, vice president of political and legislative affairs at Planned Parenthood Action Fund, said the lapse had already affected patients.

“Tens of thousands of patients have been denied access to services like cancer screenings and birth control and STI testing and treatment,” she said. A coalition of anti-abortion groups and lawmakers held a rally on Capitol Hill on Thursday to press for restoration of the ban. An unnamed U.S.

Senator told the crowd that Congress should have acted earlier. Students for Life Action updated its congressional scorecard to assign every member an “F” for failing to extend the prohibition. House Budget Committee Chair Jodey Arrington acknowledged that the reconciliation 3.0 plan was narrower than earlier versions under consideration.