The law does away with a rule brought in by Trump's predecessor, Barack Obama, that prevented states from withholding money distributed under a "Title X" program that funded Planned Parenthood and other clinics that provide abortion.
Seema Verma, who oversees Medicare and Medicaid, said after Trump signed the bill in the Oval Office that the administration wants states to decide what's best for them and the people they serve.
"We should build on the tremendous progress made in this country with expanded access to birth control, instead of enacting policies that take us backward", said Dawn Laguens, executive vice president of Planned Parenthood Federation of America, in a statement, according to The Washington Post.
The new law overturns a rule enacted by the Obama administration previous year that prevents states from redirecting Title X funds, which are earmarked for family planning services, to other federally qualified health centers for political reasons.
Those federal funds, called Title X, are competitive grants that go to affordable family planning providers. Meanwhile, the Republican-controlled Congress is likely to cut family planning funds in general in the first budget that Trump signs.
Title X of the Public Health Service Act was passed in 1970 by President Richard Nixon and provides funds to ensure access for family planning and related preventive health services for low-income or uninsured individuals, among others.
Experts also point out that if Planned Parenthood clinics are shuttered or restricted, there simply aren't enough other clinics to meet demand for things like contraceptive care, which forms a large portion of Planned Parenthood's operations.
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Republicans and abortion opponents said the new law will let states divert money now going to groups that perform abortions to organizations that do not.
Federal law already prohibits government money for abortion, except in cases of rape or incest, or to save a woman's life.
The bill passed the Senate last month after Vice President Pence had to cast a tie-breaking vote.
However, pro-choice activists say it's an attack on women's health.
McQuade said that while Planned Parenthood's Kansas affiliates don't now receive Title X funds, the new law "may make it more hard to apply for Title X dollars in Kansas in the future". "Planned Parenthood strongly opposes President Trump's willingness to undermine millions of women's access to birth control through the Title X family planning program", she said.
"This is promise kept", said the Susan B. Anthony List's Marjorie Dannenfelser, who attended the signing which was conducted without media present. Black and Sen. Joni Ernst, R-Iowa, saying they "led this effort in Congress". The clinics that remained didn't often provide all forms of contraceptives such as IUDs, and many organizations that had provided free or low-priced care had to start charging, a study showed.
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