Planned Parenthood will no longer receive funding from a US state following an appeals court ruling.
The eighth US Circuit Court of Appeals ruled that Arkansas can block state funds from going to the abortion giant.
Pro-life group, Arkansas Right to Life, said it was “thrilled” about the ruling.
The legal battle began two years ago following the release of a series of videos including one which showed senior members of Planned Parenthood haggling over the price of body parts from aborted babies. The case received international publicity.
Following the release of the videos, Arkansas Governor Asa Hutchinson cut off Medicaid funding for Planned Parenthood. Medicaid is the US Government-funded health insurance programme.
A preliminary injunction had been placed on the governor’s decision by a federal judge.
But judges in the eighth US Circuit Court of Appeals have now ruled to overturn the injunction.
The appeals court ruling was praised by Gov Hutchinson.
“This is a substantial legal victory for the right of the state to determine whether Medicaid providers are acting in accordance with best practices and affirms the prerogative of the state to make reasoned judgments on the Medicaid program”.
Arkansas Right to Life also welcomed the decision, saying in a statement: “We are so happy to have a pro-life governor who protects our taxpayer dollars from going to organizations that kill babies for profit”.
Planned Parenthood carries out over 320,000 abortions in the US each year.
The abortion provider has said it is considering an appeal to the US Supreme Court.
In Arkansas, abortion is banned from taking place after 20 weeks of pregnancy except in cases of rape, incest or to save the life of the mother.