# Justice Department Joins Texas Medicaid Fraud Lawsuit Against Planned Parenthood

> The Justice Department joined Texas' Medicaid fraud lawsuit against Planned Parenthood, which says it would shut down in Texas if it loses the case.

- Published: 2026-11-07T21:40:14+00:00
- Section: Legal & Disputes
- Author: News Desk
- URL: https://newsforagent.com/news/2026-11-07/doj-joins-texas-planned-parenthood-lawsuit
- Source: [Yahoo](https://www.yahoo.com/news/articles/justice-department-joins-texas-lawsuit-210918159.html)

## Key takeaways

- The US Justice Department filed on Friday night to join Texas' 2021 Medicaid fraud lawsuit against Planned Parenthood.
- Texas and an anonymous plaintiff seek the return of Medicaid money plus heavy penalties under the federal False Claims Act.
- Planned Parenthood has said it would be forced to shut down in Texas if it loses the case.
- The US 5th Circuit Court of Appeals ruled unanimously in August that Planned Parenthood's appeal was premature, allowing the case to continue.

The US Justice Department joined Texas' lawsuit accusing Planned Parenthood of Medicaid fraud, according to a court filing made on Friday night, [Yahoo](https://www.yahoo.com/news/articles/justice-department-joins-texas-lawsuit-210918159.html) reported. The case seeks to force the group to return money from Texas and Louisiana Medicaid programs after funding cuts, with penalties. Planned Parenthood said it would shut down in Texas if it loses.

## Paxton's 2021 Case and the Federal Filing

The Justice Department's move gives the federal government a direct role in a 2021 case championed by outgoing Republican Texas Attorney General Ken Paxton, who lost his bid to become a US senator. The filing came days after voters elected Democrat Nathan Johnson as the state's next attorney general. Paxton and an anonymous plaintiff are seeking to force [Planned Parenthood](https://akta.pro/company-profiles/00003nd/planned-parenthood) to return money it allegedly collected from Texas' and Louisiana's Medicaid programs after the states cut off its funding, plus heavy additional penalties. The lawsuit accuses Planned Parenthood of violating the federal False Claims Act by having continued to bill and collect payments from the states' Medicaid programs after the initial termination decisions, and failing to repay what it received once the terminations eventually took effect. Planned Parenthood has said that billing the states while their termination decisions were paused by courts was legal, and that it cannot be held liable because it was giving legal advice to affiliates. The US 5th Circuit Court of Appeals ruled unanimously in August that Planned Parenthood's appeal of a 2023 decision denying the national group immunity from the lawsuit was premature, paving the way for the case to continue after a nearly three-year pause.

## Planned Parenthood's National Scale

Planned Parenthood is a 501(c)(3) nonprofit federation of 35+ affiliates operating hundreds of U.S. health centers delivering sexual and reproductive healthcare, including abortion, contraception, STD testing, and gender-affirming care, to over 2 million patients annually, according to akta.pro [company records](https://akta.pro/company-data). The same records put annual revenue at $2.14 billion, with $832 million lost due to a Medicaid ban, equal to 39% of revenue. The records state that a one-year Republican ban on Medicaid reimbursements forced the closure of 51 health centers, and that 57 clinics closed or consolidated since January 2025 across 20 states due to Trump administration funding restrictions. Planned Parenthood serves 2.05 million patients nationally, with approximately half covered by Medicaid or Title X.

## Earlier Clinic Openings and Court Rulings

Planned Parenthood reopened its New Orleans clinic on October 14, now operated by Planned Parenthood Great Plains after Louisiana's New Orleans and Baton Rouge locations closed in 2025, Yahoo reported in October 2026. The U.S. Court of Appeals for the Seventh Circuit rejected Indiana's request to review a ruling that protected Planned Parenthood's ability to share abortion procedures in other states with young Hoosiers, Fox 59 reported in October 2026. Planned Parenthood's Patchogue center in Suffolk County reopened after a $1.2 million renovation, adding an exam room and new facilities, Newsday reported in October 2026; the center saw 5,485 patients in 2025 and projects 3,000 additional visits annually.

## What Comes Next in the Texas Case

The case continues after the 5th Circuit's August ruling lifted a nearly three-year pause, with the federal government now a party to the litigation.

## Companies in this story

- [Planned Parenthood company profile](https://akta.pro/company-profiles/00003nd/planned-parenthood) · website: http://www.plannedparenthood.org

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