Indiana Gov. Mike Pence signed a law protecting religious freedom in his state.
Gay rights groups and some businesses say the Religious Freedom Restoration Act could open the door to discrimination.
Pence said it's not about discrimination but preventing government from infringing on religion.
Supporters say the law is necessary so businesses will not be forced to provide services they are against based on their religious beliefs, like same-sex weddings.
"Faith and religion are important values to millions of Hoosiers and to my small family," Pence said. "And with the passage of this legislation, we insure that Indiana will continue to be a place where we respect the freedom of religion of every Hoosier of every faith."
"And we make certain that government action will always be subject to the highest level of scrutiny when it impacts the religious liberty of any Hoosier," he said.
Arkansas is set to vote on a similar measure.
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