Health and Human Services Secretary Kathleen Sebelius said Friday that she plans to tell Texas that a waiver allowing the funding won't be extended. The money will be phased out between May and September.
Federal funds cover 90 percent of the $40 million program. Sebelius says a Texas law violates federal regulations that require women have a choice in medical care.
Gov. Rick Perry blasted the decision, insisting that Medicaid rules give states the right to determine which clinics are qualified. He has said he'll use state money to save the program, which provides women cancer screenings and other critical health care.