<<And yes, I think most Dept of Agriculture grants are stupid, I would not be opposed to limiting them.
<<Besides, limiting funding based on "we have X dollars to spend, so here is where we're going to spend them" is rational.>>
Apples and oranges. It's one thing to withhold a grant because the project is stupid or because funds are limited, but the reasoning has to be rational and non-prejudicial. You're still skating away from the fact that the essence of the ban on funding human fetal stem-cell research is based on religious doctrine.