October 28, 2025


Planned Parenthood Wisconsin Resumes Abortion Services After Dropping Tax-Exempt Status

Planned Parenthood of Wisconsin has declared it will restart abortion services starting Monday, following a temporary halt prompted by funding issues tied to recent legislative changes. This decision comes after the organization opted to relinquish its tax-exempt status, a move influenced by the "One Big Beautiful Bill" Act spearheaded by President Trump.

On September 29, the Department of Health and Human Services outlined that family planning organizations could maintain Medicaid billing if they either gave up their tax-exempt status or their designation as Essential Community Providers. According to Section 156.235 of the Code of Federal Regulations, Essential Community Providers are crucial for delivering services in areas with low-income populations or a shortage of healthcare professionals. However, under the new legislation enacted in July, entities like Planned Parenthood faced exclusion from claiming tax-exempt status while receiving Medicaid funds, due to being categorized under the newly formed "prohibited entities."

This legislative shift sparked a significant legal challenge in July when a coalition of 23 attorneys general contested the constitutionality of Section 71113 of the Act. They argued that the definition of a "prohibited entity" was overly vague and that the specific targeting of Planned Parenthood providers infringed upon the First and Fifth Amendments of the Constitution. The dispute led to a federal court granting a preliminary injunction, which temporarily halted the enforcement of the Act for 14 days.

Tanya Atkinson, president and CEO of Planned Parenthood of Wisconsin, emphasized the organization's resilience in the face of ongoing attacks against reproductive health services. "We’ve stood up to relentless attacks on reproductive health for decades—and we are not backing down now. Our patients deserve nothing less," Atkinson stated.

The strategic move by Planned Parenthood to forego its tax-exempt status is seen as a critical step to ensure the continuation of abortion services under the current regulatory and funding landscape. This development underscores the ongoing national debate over abortion rights and the funding of services that support reproductive health.