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
Dangerous fire weather conditions has prompted one federal agency to impose fire restrictions on public lands in northern California.
Mandatory statewide water conservation rules have ended in California. But Sacramento-area users conserved 22 percent in June, compared to June 2013.
California and federal agencies say a new strategy is needed to save the endangered Delta smelt.
California is in the fifth consecutive year of drought, but state water managers ended mandatory conservation rules. Local water suppliers now determine conservation rates, and some have low or no targets. A water expert says that's 'shortsighted.'
California is in the fifth consecutive year of drought. Although mandatory statewide water conservation is over, the State Water Resources Control Board says water conservation remains a "top priority."