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
Work has begun on a project at Folsom Dam to install backup pumps in case the level of Folsom Lake drops significantly.
California regulators have fined 30 oil and gas operators for failing to report how much water they’re using.
There were no changes in the intensity of drought in California over the past week and El Niño is not expected to end the state's historic drought.
California water regulators accuse company of illegally diverting water that is later trucked, bottled, and sold in stores.
The drought is changing the size and flavor of California's fruit.