A state law says, " An agency of the state may not: (1) enter into a contract with; or (2) make a grant to; any entity that performs abortions or maintains or operates a facility where abortions are performed that involves the expenditure of state funds or federal funds administered by the state."
Medicaid is a joint state-federal program. A federal judge issued an injunction against the implementation of the law.
Eventually, a U.S. appeals court ruled that Indiana's restriction "violates the federal law guarantee that Medicaid enrollees be given their free choice of provider."
The high court rejected review of the case in a one line order without comment.
Several states have the same restriction on the dispersal of Medicaid funds, but the Supreme Court's rejection sets no precedent and may not affect those laws by itself.