Known as House Enrolled Act 1337, the law bans abortions because of a fetus's gender, race or genetic disability, such as Down syndrome.
Rather than restricting the abortion providers, the ACLU says Indiana’s law criminalizes certain reasons a woman might get an abortion.
Federal courts have struck down two other Indiana anti-abortion laws in the past five years.
The state claims a clinic in Louisville was performing illegal abortions.
The Planned Parenthood office in downtown Indianapolis says it’s seen an increase in threats after an anti-abortion group released videos this summer.
The GOP-led panel is the third such committee to examine Planned Parenthood.
Senator Dan Coats described Planned Parenthood’s practices, as described in the videos, as barbaric and inhuman.
Sen. Dan Coats will preside over the vote which would strip federal dollars from Planned Parenthood and move them to community health centers.
Pence ordered an investigation of Planned Parenthood two weeks ago after videos allegedly showed officials discussing the sale of aborted fetal tissue.
The governor ordered an investigation into Planned Parenthood after a video appeared to show a Planned Parenthood official discussing the sale of fetal tissue.