In 1976, the US Congress passed the Hyde Amendment, which banned the use of federal funding to pay for abortions through Medicaid. In 1976, Illinois Congressman Henry J. Hyde proposed the amendment to the Departments of Labor and Health, Education, and Welfare, Appropriation Act of 1977. In 1980, the US Supreme Court in Harris v. McRae (1980) upheld the constitutionality of the Hyde Amendment. Included annually in every Congressional appropriation act after the one passed in 1976, amended versions of the Hyde Amendment have restricted federal funding of abortion services for women participating in Medicaid.

On 30 June 1980, in a five to four decision, the US Supreme Court ruled in the Case Harris v. McRae that the Hyde Amendment of 1976 did not violate the US Constitution. The Hyde Amendment banned the use of federal funding to pay for any abortion services. The US Supreme Court's decision in Harris v. McRae overturned the decision of McRae v. Califano (1980), in which the US District Court for the Eastern District of New York had ruled that the funding restrictions established by the Hyde Amendment violated the US Constitution. After the US Supreme Court's ruling in Harris v. McRae, the Hyde Amendment continued to prohibit federal Medicaid funding for abortion services, limiting the funds available for low-income women seeking abortions.

In the case of Beal v. Doe, tried in 1977, the US Supreme Court ruled that states could constitutionally restrict money from Medicaid from funding elective abortions. After the 1973 case Roe v. Wade, in which the US Supreme Court had ruled women have the rights to terminate pregnancies within the first trimester, the state of Pennsylvania passed legislation that restricted the use of Medicaid funds for abortion procedures. In 1977, several Medicaid eligible women who were unable to receive coverage for a non-therapeutic abortion brought a case against Frank S. Beal, secretary of the Department of Public Welfare of Pennsylvania. The US Supreme Court decision in Beal v. Doe gave states the authority to place Medicaid restrictions on funding for non-therapeutic or elective abortions.

In the 2002 case Simat Corp v. Arizona Health Care Containment System, the Arizona Supreme Court ruled that the Arizona Health Care Containment System must pay for abortions when they are necessary to preserve the health of pregnant women in the system. In the case, the Court ruled that the Arizona Revised Statutes 35-196.02 and the Arizona Health Care Containment System (AHCCCS) policies, which banned public funds from being used for abortions, were unconstitutional. AHCCCS is Arizona's Medicaid insurance system, which enables low-income residents to receive medical care. The decision in Simat Corp v. Arizona Health Care Cost Containment System required AHCCCS to pay for abortions in cases for which pregnancies put women's health at risk, allowing low-income women greater access to therapeutic abortions.