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
Record summer heat has increased fire risk in California and the Western U.S. as drought conditions expand.
Statewide water conservation exceeded the mandatory goal in May and Sacramento reduced water use 40 percent.
In the fourth year of drought in California, sales and use of "safe and sane" fireworks are restricted in some areas, allowed in others.
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.