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
The U.S. Drought Center says the past week brought "widespread improvements" in drought conditions in northern California and Nevada.
California's energy grid manager says supply should be adequate for the summer, despite potential natural gas shortages in Southern California.
California water regulators will allow cities and water agencies to set their own conservation targets based on water supply.
Fire agencies are expected to continue prescribed burn operations this week in the Lake Tahoe Basin.
Severe and extreme drought were reduced slightly in California and 10 percent of the state is completely free of drought.