I figured I'd title this entry as descriptively as I could to clue in everyone as quickly as possible that I'm addressing a controversial issue.
George Bush's "ban on stem cell research" is often misexplained. What was banned, specifically, was federal funding of research on new stem cell lines after the ban, i.e., on stem cell lines arising from embryos destroyed after the ban. Bush's ban allows federal funding on those 78 stem cell lines that were in existence before the ban. (Yes, research indicates that either these particular lines are not useful or that they have aged beyond the point of usability.) Bush's ban also allows private funding of research on new stem cell lines. The government has not prohibited research on all stem cell lines nor on new stem cell lines; only withheld funding for research on new stem cell lines.
If I understand correctly, state funding of research on new stem cell lines would also be permitted.
Melton has also announced the development, with private funds, of 17 new embryonic lines. -- article