A new stem cell research deal between California and Ontario will give "rays of hope" to millions of people afflicted with such diseases as cancer and Alzheimer's, California Gov. Arnold Schwarzenegger said Wednesday.

Ontario will contribute $30 million to a joint research project between the province and California that will focus on finding new therapies for the diseases.

"What we can do together, Canada and our state … we are as powerful as anyone can be in stem cell research," Schwarzenegger told reporters at a joint news conference with Ontario Premier Dalton McGuinty at a downtown Toronto research facility.

McGuinty said the agreement could lead to "less suffering, less pain and a better life" for millions of people currently afflicted.

Schwarzenegger also spoke of his own personal connection to Alzheimer’s, through witnessing the deterioration of his "brilliant" father-in-law, Sargent Shriver.

"He didn’t even recognize his wife," he said.

Canadian researchers were the first to isolate cancer stem cells in leukemia, brain and colon cancer. Cancer stem cells are cells that regenerate, causing cancer to come back after treatment.

The money will be spread out over five years. Right now, dedicated funds for stem cell research in Canada amount to $7 million, an amount that includes research into how stem cells might be able to regenerate damaged organs or other body parts.

With files from the Canadian Press