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WASHINGTON - Thwarted by President Bush in their efforts to expand federal spending on embryonic stem cell research, Democrats are now debating whether to overturn federal restrictions through executive order or by legislation when they assume full control of the government this month.

Both President-elect Barack Obama and Democratic Congressional leaders have made repealing Bush administration restrictions announced in 2001 a top priority. But they have yet to determine if Mr. Obama should quickly put his stamp on the issue by way of presidential directive, or if Congress should write a permanent policy into statute.

The debate is not academic. Democrats who oppose abortion say such a legislative fight holds the potential to get the year off to a difficult beginning, even though the outcome is certain given solid majorities in both the House and the Senate for expanded embryonic stem cell research.

"It is a very divisive issue, and it is a tough way to start," said Senator Ben Nelson, a moderate Democrat from Nebraska. "You don't want to stumble out of the box."

In addition, many of the...