Two US states are earmarking substantial funds in a bid to cement their position as leaders in research, infrastructure and talent. On 16 June‚ Massachusetts signed a $1-billion science package into law. The same day, Maryland governor Martin O'Malley put forward a similar proposal worth $1.1 billion.

The money will mean new research institutes, biotech companies and jobs for Massachusetts — and for Maryland, if the legislature approves O'Malley's proposal. Massachusetts' programme includes $500 million for infrastructure projects; $250 million for loans, grants and biotech investment; and $250 million for life-science project funding. Dan O'Connell, Massachusetts secretary of housing and economic affairs, says the initiative will generate about 250,000 jobs over 10 years.

In Maryland, O'Malley's proposed investment would potentially double the number of jobs over the next 10 to 20 years, says David Edgerley, the state's secretary of business and economic development. The plan includes $60 million to build biotech incubators, $100 million for other life-sciences facilities and $200 million for stem-cell research.

The two states already rank top in the United States for overall science and technology funding, according to the Milken Institute's State Technology and Science Index, released last month. Massachusetts is first, and Maryland jumped from the number four spot in 2004 to the runner-up position in 2007.

US states are increasingly tapping into their own tax bases, as federal funding for R&D has been flat for several years. But legislation for long-term state funding has not always ensured a stream of research dollars; other initiatives, such as Michigan's use of a tobacco settlement (see Nature 423, 203) have been sidetracked as states work to balance their budgets.

Maryland's investments would drive job creation and contribute to the state's tax base, Edgerley says. He points to Maryland's 4.2 hectares of incubators, which already contribute more than 14,000 jobs. Increasing incubator space by 50% should boost that number considerably, he says. The rankings and proposals have kindled a friendly rivalry between the two states. “They're proposing it,” says O'Connell of Maryland's billion-dollar plan. “We've done it.” O'Connell notes that it took Massachusetts a year to go from proposal to law. Maryland's legislature will vote on the bill this autumn.