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
California has received less than 60 percent of the rain and snow this water year that it normally gets. Water managers are warning the new water year may be just as bad.
New motors, screens, and some casing repairs are in the works for eight of Sacramento's water wells. Some of the wells are more than 400-feet deep.
A long-range U.S. government forecast shows the drought in California will stick around.
The drought has farmers cutting back on watering, but some San Joaquin County growers say less water can mean a better crop.
The City of Sacramento Department of Utilities reports Friday that city water customers saved more than one-billion gallons of water last month.