Obama administration nixes Texas Medicaid program over Planned Parenthood ban

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Sebelius said the money will be phased out between May and September, the AP reports, to give the women enrolled in the Women's Health Program a chance to find alternative care.

Texas adopted the regulations implementing legislative restrictions on abortion funding last month despite HHS's warnings that they violate the federal Medicaid statute. Texas officials say they have a right to administer the program as they see fit and wouldn't violate their states' laws just to "appease" Washington.

A statement from Gov. Rick Perry's office is expected momentarily. HHS provides 90 percent of the funding for the program, but Perry has said he would use state money to keep the program going.