With the rollout of Proposition 4 funding entering its next critical phase in the second quarter of 2026, California water providers have a historic opportunity to secure financial backing for vital infrastructure and climate resilience projects. Passed by voters in November 2024, the $10 billion climate bond earmarks $3.8 billion explicitly for safe drinking water, drought preparedness and flood resilience. The State’s current 2025-2026 spending plan has authorized roughly $1.2 billion of the total water allocation, serving as a primary lifeline for water providers amid broader General Fund deficits. These funds are actively being rolled out on a competitive grant basis. Looking ahead, the Governor’s proposed 2026–2027 budget also looks to add another $792 million specifically for water-related programs on a year-by-year proposal basis.
In an article for Nossaman’s California Water Views – 2026 Outlook, we explore the key funding allocations being targeted by the Proposition 4 funding and how water providers can position themselves to win these highly competitive grants.
Senior Policy AdvisorAshley Walker is a Senior Policy Advisor providing federal and state legislative solutions and grant funding advocacy for a variety of clients with interests in sustainable communities, housing, water, and education issues. She ...
PartnerWillis Hon focuses on serving water industry clients across California on a broad range of administrative and regulatory matters. He has extensive experience before the California Public Utilities Commission where he has ...
California Water Views provides timely and insightful updates on the water sector in the state. We relay information on how water legislation and policy from the nation’s capital, Sacramento, and around the U.S. affect California’s water utilities, agencies, practitioners, and consumers. We also write about important events, conferences, legal cases, and other key happenings involving all things water in and around California.
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