Indiana cannot cut funding for Planned Parenthood because the organization provided abortion services according to a court decision.
The 7th Circuit Court of Appeals upheld a portion of a lower court ruling that said Indiana could not enforce a state law that barred abortion providers from collecting Medicaid funds for medical services. Some of those services included cancer screenings in addition to abortions.
In June 2011, a judge blocked portions of the bill and the state appealed the ruling.
Source: ABC 57. Read full article. (link)