Planned Parenthood has asked a federal judge to stop Indiana from becoming the first state to cut off all funding to the agency.
U.S. District Judge Tanya Walton Pratt is expected to rule Wednesday on the request filed by Planned Parenthood of Indiana shortly after Gov. Mitch Daniels signed the bill into law Tuesday.
The measure is part of a bill that tightens abortion restrictions and could help Daniels' image among social conservatives as he weighs a 2012 run for president.
Planned Parenthood of Indiana says the bill is unconstitutional and could leave thousands of patients without access to Pap tests, birth control and treatment for sexually transmitted diseases.
The bill also puts Indiana at risk of losing $4 million a year in federal family planning grants.