Mitch Daniels Will Defund Indiana's Planned Parenthood Governor will sign bill cutting off federal funds to group in his state By John Johnson, Newser Staff Posted Apr 29, 2011 5:27 PM CDT 166 comments Comments Indiana Gov Mitch Daniels. (AP Photo/Jose Luis Magana, File) (Newser) – Factor this into the 2012 political calculus: Indiana Gov. Mitch Daniel says he will sign a bill that defunds Planned Parenthood and puts in place strict anti-abortion measures, reports the Indianapolis Star. Daniels, who promises to announce soon whether he's running for president, will make Indiana the first state to strip Planned Parenthood of Medicaid funds. Planned Parenthood of Indiana—which says no tax dollars have ever been used for abortions, as per federal law—plans to sue. The group would lose $2 million of the $3 million it gets in federal funds—Indiana can pull the plug only on the $2 million that gets funneled through the state but has no control over the $1 million that Planned Parenthood gets directly from the feds, explains CBS. “Any organization affected by this provision can resume receiving taxpayer dollars immediately by ceasing or separating its operations that perform abortions," said Daniels. The decision should shore up his reputation among social conservatives, who grew angry with him last year when he called for a "truce" on social issues, notes Politico.