That's not completely accurate, see the NIH funding guidelines regarding "What if a scientist is conducting research with both federally fundable and non-federally fundable human embryonic stem cells?"

http://stemcells.nih.gov/info/faqs.asp

At 06:39 AM 7/20/2006, Bill_J wrote:
Bush did kill research on embryonic stem cells to this extent: ANY institution, public or private, that receives government money for any reason CAN NOT use embryos for stem cell research or they would forfiet the government money.  This means any university that accepts students on government grants or loans, any drug company that recieves government money for R&D of ANY kind; "any form of government funding" disqualifies nearly everyone.

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