Leading national pro-life organizations are blasting the Obama administration for its decision on Wednesday to disallow the state of Indiana to move forward with its request to cut off between $2-3 million in taxpayer funding the Planned Parenthood abortion business gets via Medicaid.

Governor Mitch Daniels signed the law to cut off the funding saying “any organization affected by this provision can resume receiving taxpayer dollars immediately by ceasing or separating its operations that perform abortions.”

However, the Obama administration has told the state it can’t implement the new law, with Centers for Medicare and Medicaid Services Administrator Donald Berwick denying a request to deny funds saying the federal Medicaid law stipulates that states can’t exclude providers based on the services they provide. Berwick also said the law makes it so states can’t prohibit access to family planning, which is provided under federal law. His department released a memo advising states that they can’t exclude abortion providers from receiving taxpayer funds via Medicaid...