The money is intended to help farmers, farm workers and rural communities.
Mr. Obama held a roundtable in Firebaugh, about 45 minutes west of Fresno. Valley Public Radio's Rebecca Plevin spoke with a fourth-generation farmer there today and says money isn't enough.
"They don’t need financial aid right now; what they need is water. And he says that in the short term, they need to start pumping water from the Delta; and in the long term, they really need more water storage," reports Plevin.
The President is also visiting a farm in Los Banos this afternoon.
Joining him on the trip are California Governor Jerry Brown, U.S. Senators Dianne Feinstein and Barbara Boxer and Congressman Jim Costa.
CapRadio's Drought Coverage
A California Assembly committee will hear a bill Wednesday that would allow water districts to impose taxes on any business, industry or person who wastes water.
The drought can be blamed for a number of problems and the latest is a major decline in the duck population. A new survey shows lack of rain has led to poor habitats.
UPDATED: 6:45 p.m. - Containment has grown to 29 percent, and acreage burned to 17,622. Crews on the Washington Fire, three miles south of Markleeville, took advantage of light winds to increase containment.
California water regulators are again ordering some water rights holders to stop diverting water from rivers because of the drought. The order includes some rights for the city of San Francisco.
CAL FIRE increases staffing as the forecast of dry lightning and thunderstorms raises wildfire risk in northern California and western Nevada.