Abortion Showdown Could Cost Indiana $4.3 Billion

INDIANAPOLIS (AP) — A looming showdown over Indiana's new law that cuts funding for Planned Parenthood will likely test how far conservatives are willing to go to press their tough anti-abortion agenda.

The Obama administration is threatening to cut off all federal funds for Indiana's Medicaid program, which provides health care for the poor and elderly, if the state does not lift its ban on Planned Parenthood. Other states have backed down after similar threats, but Indiana leaders are holding firm.

A federal court is already reviewing the law. If no compromise is reached, Republican Gov. Mitch Daniels, Indiana's Republican legislative leaders and the White House will all face a decision on whether 1 million Indiana residents will lose their health insurance.