U.S. laws already prohibit federal money from being used for abortion, but currently allow the Medicaid low-income health program to cover other services.
U.S. District Judge Sam Sparks said state health officials "likely acted to disenroll qualified health care providers from Medicaid without cause."
The bill passed by the Republican-controlled legislature would have barred the state from providing funds to clinics that perform abortions not covered by Medicaid, the federal healthcare program for the poor.
Demonstrations and counter-demonstrations are being held at clinics nationwide.
While Planned Parenthood does perform abortions, the organization says the majority of its services involve preventative measures and routine women's health care.
Engineer created charitable bot to profit from Donald Trump's market-changing tweets.
The dean of of New York's Cathedral of St. John the Divine argued that "scientific" birth control is no more "artificial" than many spiritual means to that end.
In total, they will run the equivalent of more than nine marathons to protest against Donald Trump's proposed plans.
The vice president-elect has a history of anti-women and anti-LGBT stances.
The president-elect's promise to repeal the Affordable Care Act will affect millions of women.
Planned Parenthood says at least 24 states have cut its clinics of funding since mid-2015.
Governor Rick Scott signs law that also imposes abortion restrictions being tested before the U.S. Supreme Court.
The Ohio governor has eschewed the divisive issue in his presidential bid, even when it could help him in states like South Carolina.
Their accusations come amid the indictment of two members of an anti-abortion group who created controversial videos about the health organization.
After the founder of the Center for Medical Progress was indicted by a Texas grand jury, members of the House committee investigating Planned Parenthood say the organization isn't their sole focus.
David Daleiden, founder of the Center for Medical Progress, could face up to 20 years in jail.
The move was prompted by a petition from Senator Rand Paul.
Robert Dear is suspected of killing three people at a Planned Parenthood in Colorado on November 27.
Robert Dear is accused of killing nine people in Colorado on November 27.