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CHICAGO, July 12 - Gov. Rod R. Blagojevich signed an executive order on Tuesday making Illinois the fourth state to devote public money to embryonic stem cell research.

A state program will distribute $10 million in grants in its first year to seek treatments and cures for conditions like Alzheimer's, spinal cord injuries and heart disease.

"It is the necessary and proper role of government to take action when no one else will," Mr. Blagojevich, a Democrat, said at Children's Memorial Hospital in Chicago, where he signed the order. "Unfortunately, the federal government has decided to sit on the sidelines." Four years ago, President Bush limited federal financing for stem cell research to existing stem cell lines.

The state program, which Mr. Blagojevich said he expected to be running by the end of year, permits research on adult, cord blood and new embryonic stem cell lines, but prohibits research involving human cloning, tissue that was bought or sold for research, and embryos from abortions.

Several other states have financed or considered financing embryonic stem cell research.

Voters in California have...