SPRINGFIELD - Gov. Rod Blagojevich apparently has dropped his threat to cut funding to state agriculture programs.

The governor's change of heart affects controversial cuts to 4-H programs, soil and water conservation districts and the University of Illinois Extension program.

Instead of withholding more than $40 million as part of his budget fight with lawmakers, the governor will release the cash to keep the programs operating, said lawmakers and officials connected with the affected programs.

"I may be able to sleep at night," said Rich Nichols, director of the Association of Illinois Soil and Water Conservation Districts.

State Sen. Deanna Demuzio said state Senate President Emil Jones told lawmakers on the Senate floor Wednesday that they could tell their local offices Blagojevich planned to send the agriculture money soon.

Demuzio, D-Carlinville, said it was good to ease the looming pressure of budget cuts, especially so young 4-H members' summer now likely won't be disrupted.

"They can start their projects knowing full well they can participate," she said.

Spokespersons with the governor's office did not immediately return telephone messages. It is not clear if the governor's decision will affect threatened cuts to universities and local school districts.

Blagojevich says the state faces a $750 million shortfall in funding in the fiscal year that ends June 30.

State Sen. Gary Forby, D-Benton, said the governor changed his mind about cuts to agricultural programs after lawmakers demanded he find another way to address the state's budget problems.

"I don't know how can you take money away from kids like that," Forby said.

It's not the first time Blagojevich has threatened to wield his budget ax as part of a negotiating tactic with the General Assembly. Last year, he said he would cut money to the Illinois State Police if lawmakers didn't go along with his budget plan. The cuts never happened.

At stake for Extension was an estimated $18 million. Of that, $5 million was earmarked for a Cook County Extension program that already was in the process of dismantling some of its operations when word of the governor's reversal came down Wednesday afternoon.

For soil and water conservation districts, the change likely means $7 million will be flowing into their coffers. More than a dozen districts had said the governor's threatened cuts would have resulted in them closing their doors by June 1.

"Not only is this important for employees, but for services they provide to state of Illinois, it's also very important," said state Sen. Mike Frerichs, D-Gifford.

Kurt Erickson can be reached at kurt.erickson@lee.net or 789-0865. Mike Riopell and Kartikay Mehrotra contributed to this report.