What is Prop 4? 

By: Hawkeye Sheene, Senior Funding & Communications Specialist & Sheri Lasick, Senior Funding Specialist

This article contains and answers the following:

California’s Proposition 4 bond, passed by voters in November 2024, will help fund many needed multiple-benefit water projects across the state. Proposition 4. The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (also referred to as the Climate Bond) will invest $10 billion over the next five years to finance projects for: 

Much of the funding will be provided through California State agencies existing or new grant programs with the California Natural Resources Agency responsible for overseeing accountability and implementation. Eligible applicants will include local agencies, utilities, tribes and nonprofit organizations. At least 40 percent of total funds must go to projects that benefit vulnerable populations or disadvantaged communities and at least 10 percent of total funds must go to projects that benefit severely disadvantaged communities.  

Here is what you need to know to start preparing for the coming funding. 

 Proposition 4 will invest $10 billion over the next five years to finance projects for Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air.

Funding for Multiple-Benefit Water Projects 

Approximately $3.8 billion is designated for projects to enhance water infrastructure, improve water quality, and bolster drought resilience. Of particular interest to many clients, much of this funding will be allocated through the following State agencies and programs: 

In addition to the funding identified above, multiple-benefit water projects may also be eligible for funding from other Proposition 4 grant programs. For example, water projects that also improve coastal resilience may be eligible for grants from the State Coastal Conservancy and the Ocean Protection Council. Green infrastructure water projects that also provide extreme heat mitigation may be eligible for Natural Resources Agency’s Urban Greening Program funding.  

When Will Funding Be Available? 

The Governor’s proposed Climate Bond Expenditure Plan, released in January, proposes an initial $2.7 of the $10 billion to be allocated in fiscal year 2025-2026. The funding allocation and timeline will be confirmed after the Governor and legislative leaders negotiate to reach the final budget package in June.  

Many State agencies are working to develop grant program guidelines reflecting the Climate Bond’s goals and priorities so that programs will be ready to move forward when their funding is allocated.  

Other funding agencies are already moving forward with existing grant programs in anticipation of Proposition 4 funding allocations after July 2025. The State Coastal Conservancy is currently accepting applications on a rolling basis and the Wildlife Conservation Board is opening up pre-applications on April 22, 2025 with grant awards anticipated later in the year. 

At least 40 percent of total funds must go to projects that benefit vulnerable populations or disadvantaged communities.

Get Prepared for Success!  

At West Yost, we understand that strategic funding planning is key to funding success. West Yost can help you successfully prepare for upcoming grant solicitations in the following steps:  

• Contact funding agencies about potential projects and incorporate feedback.  
• Provide input on program guidelines by sharing your agency’s needs and barriers to funding in program surveys and discussions.  
• Review plans and talk to department heads to identify eligible projects.  
• Position priority projects with funding programs by assessing program guidelines and priorities. 
• Assess how water projects might also offer additional benefits, such as flood mitigation, drought relief, additional green spaces, or improve environmental habitats.  
• Prepare feasibility studies or perform initial project scoping to develop eligible multiple-benefit projects that can be competitive across multiple grant programs.  
• Assess project implementation timelines to align with grant schedules starting over the next five years.  

Our goal is to work alongside you to successfully pursue grant funds and complete much needed projects to help create a more resilient future for our communities. 

Stay tuned for more updates! Our funding team is monitoring the Proposition 4 grant programs and will continue to provide information updates and advise clients as programs are implemented. 

For more information, refer to the Proposition 4 Expenditure Plan posted by the Department of Finance in January and the February Legislative Analyst Office’s report.