California’s Proposition 4 (Prop 4) will deliver approximately $10 billion in funding for climate resilience, water reliability, renewable energy, and other environmental projects over the coming years. Although many funding programs are still being finalized, public agencies and partners that take steps now to prepare will be in a stronger position to compete when funding becomes available.
What is Prop 4?
Approved by voters in 2024, Prop 4 is a long-term investment in California’s response to climate change and its associated environmental challenges. Funding will support a wide range of project types, including water supply and flood management, wildfire resilience, sea level rise and coastal adaptation, habitat restoration, clean energy infrastructure, and extreme-heat mitigation.
Prop 4 will be implemented by multiple state agencies, with most funding distributed through competitive grant programs. This means that applicants will need to navigate a decentralized and evolving funding landscape that can complicate the tracking of funding opportunities.
What to Expect
Agencies will release funding primarily through existing grant programs through 2040. In the near term, funding is expected to flow mainly through existing programs, as the State of California prioritizes programs with established guidelines and administrative capacity to deploy funds quickly. Early signals suggest this funding will prioritize projects that deliver multiple benefits, such as improving climate resilience while also supporting ecosystems or communities. New grant programs are anticipated to come online later, following additional guideline development and budget action.
Equity will also play a central role. A significant portion of funding is intended to benefit disadvantaged and vulnerable communities, and projects that demonstrate clear community benefits are likely to be more competitive.
How to Prepare Now
Because Prop 4 funding will roll out over time, public agencies pursuing grants will need to stay engaged and ready as opportunities emerge.
To prepare:
- Identify priority projects that align with Prop 4 funding categories, focusing on those that are already scoped or partially developed.
- Emphasize multi-benefit outcomes, such as resilience, habitat improvement, and community impact.
- Track funding programs across agencies to stay ahead of varying timelines and requirements and to provide multiple funding options for projects.
- Engage partners early, strengthen project concepts, optimize outcomes, and position projects for funding.
- Prepare internally for grant applications, such as by developing project narratives, obtaining technical data, and identifying support resources.
How ESA Can Help
ESA has developed a tracking system to monitor funding as it is released, so our teams can partner with clients and align projects with needed and applicable grants. A core team of California professionals is here to help answer your Prop 4 questions and to assist in preparing grant applications.
Reach out to Erich Fischer, Natural Resources Market Leader, with your questions and stay tuned for news about grant funding releases, hopefully coming this summer.
