The federal government has bowed to pressure and dropped its controversial plan to link funding for scientific research to Senate approval to deregulate university fees.
Education Minister Christopher Pyne had angered some key Senate crossbenchers by linking the two.
He now has announced the 150 million dollars of funding will be extended for another year.
The Minister has also announced the government will split the legislation into two parts and remove a link to other grants.
As Amanda Cavill reports, the government will hope the change can win the support of six of the eight crucial crossbenchers for its ambitious reform program.
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