CGS-authored

While praised by scientists, President Obama's decision to lift restrictions on federal financing of embryonic stem cell research could cause state governments and philanthropists to pull back on billions of dollars they have pledged for such work.

A number of states and philanthropies rushed in to fill the gap after President George W. Bush imposed the restrictions in 2001. California voters alone approved spending $3 billion over 10 years, making the state's taxpayers the nation's largest financial backers of the research.

But Mr. Obama's decision, announced Monday, has removed the original raison d'être for the California program and others like it. And with most states facing severe budget pressures, it may prove difficult to justify spending the money.

"If the federal government starts meeting its responsibilities, then there's really less reason for the state governments to step in," said Dr. John A. Kessler, director of the stem cell institute at Northwestern University.

Fiscal headaches have already caused New Jersey to reduce planned spending on stem cell research, and Massachusetts has trimmed overall life-sciences spending. And California's program may run out...