A federal appeals court has ruled that Indiana cannot cut off funding for Planned Parenthood just because the organization provides abortions.

The 7th U.S. Circuit Court of Appeals in Chicago on Tuesday upheld the core portion of a lower court order that said Indiana cannot enforce a state law that barred abortion providers from collecting Medicaid funds for any medical services.

Republican Gov. Mitch Daniels signed a law in May 2011 that made Indiana the first state to deny the organization Medicaid funds for general health services including cancer screenings.

The ruling brought reaction from pro-life groups, including the Susan B. Anthony List.

"Over the last two years—as 14 states have introduced or enacted measures to end taxpayer funding of abortion businesses—America’s largest abortion provider, Planned Parenthood has been able to rely only on sympathetic courts and the Obama administration to buck the will of the taxpayers," said SBA List President Marjorie Dannenfelser. "Taxpayers across the country want out of the abortion industry and pro-life lawmakers will not stop until working until every dime of taxpayer funding is cut from Planned Parenthood."