Indiana Gov. Mike Pence on Thursday signed into law a controversial bill that could legalize discrimination against lesbian, gay, bisexual and transgender people based on religious grounds.

The Religious Freedom Restoration Act, which was signed by the Republican governor at a private ceremony, authorizes any individual or corporation to cite its religious beliefs as a defense when and if sued by a private party.

"Today I signed the Religious Freedom Restoration Act, because I support the freedom of religion for every Hoosier of every faith," Pence said in a statement Thursday, according to the Huffington Post. "The Constitution of the United States and the Indiana Constitution both provide strong recognition of the freedom of religion but today, many people of faith feel their religious liberty is under attack by government action."

Supporters behind the bill say it helps to prevent the government from forcing business owners to act in ways contrary to strongly held religious beliefs. Opponents, however, argue that the bill opens the door to discrimination against the LGBT community by giving business owners legal protection to deny services to same-sex couples. For example, gay rights groups note that it will be used by businesses that do not want to provide services for gay weddings.

"It is a signal to those who want to discriminate that they have greater leeway to do so," said Jennifer Pizer, senior counsel for Lambda Legal, a national gay rights legal group, according to Reuters.

However, Pence and conservative supporters denied that the bill is about discrimination, arguing that it is needed to protect religious liberty.

"This bill is not about discrimination, and if I thought it legalized discrimination in any way in Indiana, I would have vetoed it," Pence said in his statement. "For more than 20 years, the federal Religious Freedom Restoration Act has never undermined our nation's anti-discrimination laws, and it will not in Indiana."