A day after President Bush vetoed expanded federal funding of embryonic stem cell research, Gov. Arnold Schwarzenegger on Thursday authorized a $150 million loan to fund California’s stem cell institute, which has been stalled by lawsuits.

Schwarzenegger, a Republican who has been trying to put distance between himself and the unpopular president as he seeks re-election this year, said the state cannot afford to wait to fund the critical science associated with stem cells.