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President Bush's veto of a bill to ease restrictions on federally funded embryonic stem-cell research will hinder California's $3 billion voter-approved effort to turn stem cells into cures, backers of the state-funded research effort said Wednesday.

Bush's rejection of the legislation -- his first-ever veto in his 5 1/2 years in office -- shows his continued support for those who oppose, on moral grounds, destroying human embryos to create stem cells in research intended to develop new treatments for grave conditions such as Parkinson's, diabetes and spinal cord injuries.

The vetoed bill, overwhelmingly approved by the Senate earlier in the week, would have allowed federal funds to be used for research using new embryonic stem-cell lines. Such work has continued in the United States, but only with private or state dollars in labs that do not depend on federal support.

The veto was a crushing blow for advocates who hoped for a national effort to find treatments for some of medicine's most stubborn and deadly maladies -- efforts that polls say are supported by a majority of Americans. It also...