Oregon's House passed HB 4127 on a 34-20 party-line vote, allocating $8.9 million in state funds to replace $16.4 million in federal funding stripped from Planned Parenthood clinics by a one-year congressional ban starting July 2025. The Senate approved the bill on March 6, 2026.

The bill directs $8 million to the Oregon Health Plan to backfill lost federal Medicaid payments and $890,000 to Oregon ContraceptiveCare for low-cost contraceptive services. This builds on $7.5 million previously allocated by the Emergency Board in November 2025. The funding sustains operations at 11 Planned Parenthood clinics across Oregon — from Portland to Ontario — serving more than 75,000 OHP members with cancer screenings, STI testing, contraception, and preventive care. Approximately 10% of services are abortion care. The Grants Pass clinic has already temporarily closed due to staffing shortages.

For CCO administrators, the bill preserves a critical network provider. Planned Parenthood clinics handle significant reproductive health volume that would otherwise shift to already-stretched community health centers and hospital outpatient departments. The cost differential matters: Planned Parenthood delivers these services at lower per-encounter costs than emergency departments or hospital-based clinics. For the state's fiscal picture, however, the math is challenging — Oregon is replacing federal dollars with general funds during a tight budget year when legislative budget writers are already cutting spending. House Majority Leader Ben Bowman, who sponsored the bill and also led SB 951, framed it as essential to healthcare access; opponents argued other entities provide identical services.

Watch for the Governor's signature and whether the congressional ban extends beyond one year, which would require Oregon to sustain or increase this state funding permanently.