A federal appeals court on Tuesday cleared the way for the Trump administration to enforce a rule that bars Medicaid funding to health centres performing abortions, including Planned Parenthood, in certain Democratic-led states, Reuters reported.

The decision temporarily stays an injunction issued by the U.S. District Judge Indira Talwani that had blocked the law in 22 states and the District of Columbia.

The provision, part of the One Big Beautiful Bill Act passed by the Republican-led Congress, targets tax-exempt organisations that provide family planning and reproductive health services. It bars those performing abortions from receiving Medicaid funds if they obtained more than $800,000 in fiscal year 2023. Planned Parenthood has said the law was passed with its operations in mind and has contributed to the closure of at least 20 health centres since July.

The latest legal development comes after Democratic state attorneys general, including those from California, Massachusetts, and New York, sought to reinstate a block on the law earlier this month. They argued the provision imposed an unconstitutional retroactive condition on state Medicaid participation. Talwani initially agreed, saying the law did not give states clear notice about which entities it covered and placed unexpected restrictions after federal approval of their Medicaid plans.

Tuesday’s 1st U.S. Circuit Court panel, based in Boston and composed entirely of judges appointed by Democratic presidents, sided with the administration. The judges concluded the law was not ambiguous and that Congress had the authority to impose such conditions, indicating the government was likely to prevail on appeal.

Representatives for Planned Parenthood and the affected states did not immediately comment. The ruling is the latest in a series of appeals court decisions that have allowed the Trump-era law to proceed despite lower court injunctions.