States Rethinking Costly Stem Cell Programs

STEVE INSKEEP, host:

We've been reporting a lot in recent weeks about money that states are counting on from the federal government, and it's not just money from the stimulus package. There's also money expected for research on human embryonic stem cells. President Obama has announced his intention to lift restrictions on federal funds for that research, restrictions that were imposed by President Bush. This poses something of a dilemma for states that have spending their own money on that research. NPR's Joe Palca reports.

JOE PALCA: President George W. Bush placed severe restrictions on federal funding for human embryonic stem cell research, restrictions scientists said would delay the development of cures. So a half-dozen states - including California, Maryland and New York - decided to commit state funds to fill the gap, as it were.

Ever since President Obama announced his plans to free up federal dollars for embryonic stem cell research, stem cell advocates have been trying to figure out what that will mean for their state programs.

Ms. SUSAN SOLOMON (CEO, New York Stem Cell Foundation): We have been doing a lot of thinking and planning about that, and I spent much of the day on conference calls with my staff about that.

PALCA: Susan Solomon heads the New York Stem Cell Foundation. It's a nonprofit organization not a state agency. She helped push the state to adopt an 11-year, $600 million initiative to fund stem cell research two years ago. Naturally, she's thrilled that more money will be coming for stem cell research.

Ms. SOLOMON: What you want to do is put the federal dollars to the best use.

PALCA: And since New York researchers have had access to state money, they've started stem cell research that could immediately benefit from an infusion of federal dollars.

Ms. SOLOMON: They have projects to be attached to quickly.

PALCA: She says state funds remain critical, because there are still areas of stem cell research that are off-limits to federal support. For example, there's a congressional ban on creating new stem cell lines with federal money.

In Maryland, Karen Rothenberg says the decision to fund stem cell research was more about economics than health. Rothenberg is dean of the University of Maryland Law School and chair of the state stem cell fund.

Ms. KAREN ROTHENBERG (Dean, University of Maryland Law School): It was a strategic part of a much larger model of biotechnology advancement and economic development in the state.

PALCA: But Rothenberg acknowledges a question hangs over every state stem cell program now that the federal government has indicated its intention to fund more embryonic stem cell research.

Ms. ROTHENBERG: Why do we need to have this state special fund if we've now got this opening of the possibility of federal money?

PALCA: Why indeed, says Caltech biologist David Baltimore. He was a member of the board overseeing California's stem cell program. He says it's unusual for states to support a specific area of biomedical research.

Dr. DAVID BALTIMORE (Biologist, Caltech): They did it only in extremis, because the federal government was not doing it. But now that the federal government will be in this area, the rationale for the individual state programs becomes much less compelling. And I think they're going to have to rethink the basis on which they're carrying out their funding, if they continue funding at all.

PALCA: But rethinking is not really an option in California. In 2004, the voters there passed Proposition 71, committing the state to spending $3 billion over the next decade. Alan Trounson heads the state's stem cell program. He says that money isn't going away.

Mr. ALAN TROUNSON (Head of California State Stem Cell Program): Because it would require that the people would have to put a referendum in another proposition, if you like, to dismantle it. And I think that's most unlikely for that to occur.

PALCA: So while some states may reconsider their commitment to stem cell funding, California's will be there for a while.

Joe Palca, NPR News, Washington. Transcript provided by NPR, Copyright National Public Radio.