UPDATE 1-Calif., New York may benefit from stem cell move

The economic stimulus bill that Obama signed last month included about $10 billion over two years for the NIH, most of which will go to research grants. Stem cells studies could get some portion of that money.

Some states are dealing with their own prohibitions. In November, Michigan voters passed a measure to allow scientists to create stem cells for research using embryos left over after fertility treatments. And the University of Michigan on Monday launched a new stem cell research program.

Stem cells are the body's master cells. Stem cells from days-old embryos can produce any type of cell in the body. Some scientists hope to take advantage of these transformational qualities to fashion new treatments for a variety of diseases.

Because creating these stem cells for research involves the destruction of a human embryo, some people call it unethical.

(Editing by Cynthia Osterman)