Connecticut, one of the littlest states in the union, is following close behind west coast giant California in funding embryonic stem cell research.
You could argue, actually, that Connecticut is ahead of California, because CA has been bogged down in lawsuits that have tied up its funds (although California has managed to acquire some bridge loans). New Jersey has also approved embryonic stem cell funding, and several other states have bills in the works. Other states have gone the opposite route and prohibited public spending on human stem cell research.
This page has a great state stem cell law roster.