But the law only allows states to redirect funds from abortion providing groups, it does not force them to do so.
It has been illegal for federal dollars to be spent on abortions since the Hyde Amendment was enacted 41 years ago - federal dollars at Planned Parenthood go toward preventative health care, birth control, pregnancy tests, cancer screenings and other women's health services.
The law is a gain for anti-abortion conservatives bent on defunding Planned Parenthood and Trump himself.
"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", Dawn Laguens, executive vice president of Planned Parenthood Federation of America, wrote in a press release.
The bill, which the usually camera-friendly President signed without any media present, reverses an Obama-era regulation that prohibited states from withholding money from facilities that perform abortions, arguing that many of these facilities also provide other family planning and medical services.
House Speaker Paul D. Ryan (R-Wis.), by contrast, called the measure "a major pro-life victory".
Southwest Florida could see a big cut in funds to Planned Parenthood. Vice President Pence cast the tie-breaking vote in the Senate in favor of the resolution.
And because the vote took place under the Congressional Review Act, which allows regulations to be overturned by a simple majority, there was no chance for dissenting lawmakers to filibuster.
"Extremists in Congress are trying to make it easier for state politicians to block women from getting birth control and other preventive care", Cecile Richards, president of Planned Parenthood Federation of America, said in a January 31 statement.
Planned Parenthood President Cecile Richards rejected that offer in March. "Title X-funded clinics play a vital role in our health care system, with over four million women receiving family planning and preventive care at these clinics each year. Too many women still face barriers to health care, especially young women, women of color, those who live in rural areas, and women with low incomes", Childs-Roshak said.