State agencies outline $131.8 million Prop 4 spending plan for climate‑smart agriculture next year

The California Department of Food and Agriculture laid out a multi‑year spending plan on the Climate Smart Agriculture chapter of Proposition 4 that would direct $131.8 million in fiscal year 2025–26 to eight programs and approve phased funding for additional programs in 2026–27.

The proposal, presented by Arma Cozina, deputy secretary at CDFA, would prioritize immediate implementation for four existing programs while phasing in new programs that require additional design and stakeholder engagement. "The budget includes $131,800,000.0 in fiscal year 25 26 for the 8 programs identified in the for further investment in the climate smart agriculture section of Prop 4," Cozina said.

Why it matters: the allocation targets water efficiency, soil health, urban agriculture, farmer market infrastructure and several new grant categories. The administration says the investments aim to conserve water, reduce greenhouse‑gas emissions and improve food system resilience at the farm level.

Key program proposals in the administration plan include: - A $37.6 million appropriation for the State Water Efficiency and Enhancement Program (SWEEP), which funds irrigation improvements and pumping efficiency on farms. CDFA told the subcommittee SWEEP has allocated $208 million since 2013 and has historically been oversubscribed. - $35.9 million for the Healthy Soils program, which CDFA said has awarded about $206 million since 2016 and is also frequently oversubscribed. - $18.8 million for the Urban Agriculture Program to support projects increasing local food access in urban areas. - $19.9 million for invasive species prevention and response projects, to be prioritized with the Interagency Invasive Species Council of California.

Two new grant programs would be accelerated in 2025–26 because CDFA said it has related certification and outreach capacity: a year‑round certified farmers market grant program and a certified mobile farmers market grant program (the department said it is developing a mobile certification consistent with "assembly bill 27 86," as cited in testimony). Each of those categories would receive roughly $9.3 million in 2025–26 and $9.2 million in 2026–27 under the plan.

Two additional, more complex programs — a tribal food sovereignty program and a regional farm equipment‑sharing program — would receive $200,000 each in 2025–26 for program development and $14.7 million each in 2026–27 for grant awards once solicitation documents, public comment, and technical assistance structures are in place. Cozina described the tribal program as one that would focus on irrigation and processing infrastructure and said the equipment‑sharing program will require more stakeholder engagement.

Office of the Legislative Analyst Frank Jimenez told the subcommittee the plan "is reasonable for this chapter of Proposition 4," noting the administration’s approach to use existing programs where possible and phase in new efforts where additional planning is warranted. Department of Finance staff also described a list of pending allocations that will need additional legislative guidance, including land access for socially disadvantaged farmers and a CalVans deployment for agricultural worker vanpools.

Questions from members focused on equity and implementation. CDFA said it will develop grant guidance "in accordance with the language that's in the bond" and use technical assistance providers to help vulnerable or disadvantaged applicants access funds. On solicitations the department said it plans new solicitations rather than automatically funding prior unfunded applicants because program authorizing language and on‑the‑ground needs may have changed.

The subcommittee also discussed AB 2313 and related trailer‑bill language for the regional equipment‑sharing program; lawmakers indicated they intend to give early statutory direction consistent with prior legislative intent.

What’s next: CDFA said it will begin program development and public outreach for the tribal food sovereignty program in July 2025, solicit proposals in September 2026 and anticipates awards being made by March 2027. Additional appropriations for programs earmarked to phase in will be requested in the 2026–27 budget year.

Speakers quoted in this article spoke during the Prop 4 agriculture chapter presentation and associated questioning by members of Assembly Budget Subcommittee No. 4.