Highlight of the Opportunity:
The Office of Agricultural Resilience and Sustainability (OARS) will open a solicitation for the Healthy Soils Program (HSP) and State Water Efficiency and Enhancement Program (SWEEP), through a Block Grant Structure. This funding is coming from the Prop. 2 Climate Bond funding that was voted on in the last election. Instead of providing funding directly to California producers, OARS will invite eligible partner organizations to apply for $2-4 billion in funding, to then disperse locally, in a predetermined service area. These Block Grant Recipients will determine a service area, develop an on-farm selection process, and oversee on-farm implementation of producers' projects. The Climate Bond allocated $40 million for SWEEP and $65 million for HSP. A draft Application Guidelines and Award Procedures manual has been released, and the public comment period will be open from January 20th to February 18th, 2026. This information can be viewed on the CDFA OARS webpage on Climate Bond Funding for Climate Smart Agriculture. Included below is a one-page document that provides additional details on this Block Grant opportunity:
Eligibility
Who is eligible to apply for Block Grant funding? Eligible Block Grant Recipients (BGRs/Lead Applicants) will enter into an agreement with CDFA to disperse funds to producers for on-farm projects. BGRs will partner with eligible Technical Assistance Provider (TAP) agencies, to provide on-farm expertise to awarded producers. In some cases, the BRG can also serve as the TAP. Here are the criteria for eligibility:
- BGR Eligibility: Public agencies, Local Agencies, 501(c)(3) Nonprofit organizations, Special Districts, Joint Powers Authority, Public Utilities, Local Publicly Owned Utilities, Mutual Water Companies, and California Native American Tribes are eligible
- TAP Eligibility: As defined in the Canella Act, Resource Conservation Districts (RCDs), University of California Cooperative Extension, California public colleges and universities, Nonprofit organizations, Groundwater Sustainability Agencies, and Irrigation Districts as entities eligible for technical assistance funding.
Below are the draft documents to review, if you are an eligible organization interested in applying for HSP or SWEEP Block Grant Funding:
Estimate Block Grant Solicitation Timeline:
- Concept Proposal Opens: April 2026
- Full Proposal Notification: June 2026
- Full Proposal Close: August 2026
- Award Notification: September 2026
- Award Execution: January 2027
What does this mean for farmers?
Farmers and ranchers that are interested in applying for SWEEP or HSP funds will have an opportunity to do so in 2027, once Block Grant Recipients have been announced and awarded. Producers will apply directly through awarded BGRs. In the meantime, the following documents highlight how to participate in HSP and how to participate in SWEEP.