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
10:55 a.m.: (AP) - Officials say Californians missed the state's monthly 25 percent water conservation target for the first time since enforcement of the cutbacks began in June.
Fire agencies are planning to begin prescribed fire operations Monday in the Lake Tahoe Basin. There are at least 10 prescribed burn projects scheduled.
A movement around the U.S. encourages people to skip the shopping malls Friday and spend time in nature. Some national parks and state parks in California are waiving entry fees.
The latest U.S. Drought Monitor showed no change to drought conditions in California over the past week. But, the report does not include the storm that brought rain to valleys and snow to the Sierra Nevada this week.
Two million Sacramento-area water users conserved 27 percent in October, the same rate as September.