What Prop 4 means for Southern California
In November 2024, nearly 60% of voters in California voted “yes” to pass Proposition 4: the Parks, Environment, Energy, and Water Bond Measure. The legislatively referred bond act, commonly known as Prop 4, authorizes the state to borrow $10 billion to fund a wide range of natural resources and climate activities.
Many state and local agencies have been operating in an environment of uncertainty about how to advance resilience and environmental priorities in the region. Now, as the state begins releasing early Prop 4 guidance and preparing new funding rounds, Southern California agencies have a clearer picture of how these dollars will begin to move.
Key Prop 4 programs getting underway
Prop 4 provides both funding for new initiatives, as well as additional rounds of funding for existing programs. Particularly for those existing programs, many funding opportunities are expected to be released in the first and second quarters of 2026.
Extreme Heat and Community Resilience Program (EHCRP)
The Extreme Heat and Community Resilience Program, administered by the Governor’s Office of Land Use and Climate Innovation, offers a major near-term funding opportunity. The program provides grants and technical assistance to local, regional, and tribal governments to reduce risks from extreme heat and urban heat islands.
The next round of funding is expected to begin in spring 2026 with the release of a Notice of Funding Availability and preapplication interest form, and awards anticipated in fall 2026. EHCRP supports strategies such as shading, reflective surfaces, passive and evaporative cooling, heat action plans, and nature-based solutions.
Two grant types are available: Early Transformative Infrastructure grants (up to $1 million) support smaller, early-stage projects and planning efforts, with 25% of funds dedicated to demonstrating proposed solutions. Advanced Transformative Infrastructure grants (up to $4 million) fund larger, more complex projects such as park and home retrofits, cooling centers, microgrids, and other shade or cooling investments.
Partnerships are required for most applicants, making early collaboration essential. The program also emphasizes a “belonging element,” encouraging community-centered design features such as public art, cultural references, and community gardens.
Transformative Climate Communities (TCC)
The Transformative Climate Communities program, administered by the Strategic Growth Council, is also preparing for a new $100 million funding cycle. TCC funds community driven, multisector climate projects that reduce greenhouse gas emissions and improve local air quality.
The next round of funding began with draft guidelines in fall 2025, followed by final guidelines and an application window in spring or summer 2026, and awards in early 2027.
Eligible projects include: energy efficiency upgrades, solar installations, urban greening, affordable and sustainable housing, transit access, health initiatives, and community microgrids. The program places strong emphasis on collaborative governance, requiring applicants to demonstrate meaningful partnerships and deep community engagement.
Community Resilience Centers (CRC)
The Strategic Growth Council is also advancing its Community Resilience Centers program, which includes $55 million for planning, construction, and retrofits of community resilience hubs. These centers are increasingly important for communities facing extreme heat, wildfire smoke, and power outages. The CRC timeline closely aligns with TCC, and guidelines are currently open for public comment.
EDA Disaster Supplemental
While not part of Prop 4, the Economic Development Administration’s Disaster Supplemental remains one of the few large federal funding opportunities currently open. With $1.45 billion available for communities that experienced major disaster declarations in 2023 or 2024, the program supports economic recovery and resilience, including natural hazard mitigation and long-term redevelopment. Applications are being accepted on a rolling basis, making it an important complement to Prop 4 for eligible jurisdictions.
Strengthening your Prop 4 application
A strong Prop 4 funding application requires a clear demonstration of project feasibility, supported by well-defined objectives, measurable success metrics such as projected greenhouse gas reductions, populations served, or hazard mitigation outcomes, and evidence of meaningful community and stakeholder engagement incorporated into the project’s design.
There are three elements that applicants should keep in mind to help establish the project’s credibility and ensure that proposed activities are grounded in realistic planning and supported by appropriate partners and resources:
- Document cross sector partnerships.
- Identify cost share commitments.
- Present a detailed scope of work with a line-item budget aligned to regional, state, and local priorities.
Confirming eligibility and advancing competitiveness
Equally important is confirming that the project meets all eligibility requirements, including alignment with allowable project types, applicant categories, and target populations. Competitive proposals also demonstrate established partnerships, sufficient capacity to complete the work within the defined grant period, and a clear need for grant funding. They show how the project advances program goals, incorporate substantive community engagement, and—when required—include preliminary engineering or design materials. A careful review of published scoring criteria and the identification of quantifiable performance metrics further strengthen the proposal by clearly articulating anticipated outcomes and overall value.
Preparing competitive grant applications
Agencies should determine if their projects are competitive, not just eligible or compliant, by using data tools to assess vulnerability and quantify impact; aligning projects with regional and local plans; demonstrating feasibility and readiness; and building partnerships early.
Data-driven approach
- Assess community vulnerability with tools like CalHeatScore and Disadvantaged Communities.
- Alignment with regional, state, and local goals.
- Well-developed scope of work with line-item budget and territory defined.
Project impact
- Feasibility: demonstrate that project has a high likelihood of success.
- Defined project objectives and metrics by which success will be measured.
- Metrics: GHG reduction, benefitting population, natural hazard mitigation.
Engagement
- Describe community and stakeholder engagement during project design.
- How did you incorporate feedback into the application?
Commitments
- Document private and public sector partnerships and investments.
- Identify sources of cost share funding.
Steps regional leaders can take to prepare
This is a crucial moment for Southern California. State and local agencies are in a strong position to help advance the state's climate and environmental initiatives, but preparation is key. Use this road map to begin evaluating potential projects now.
While state and local agencies face real challenges, this is also a chance for Southern California to come together—aligning on shared climate goals, crafting stronger grant strategies, and supporting one another across jurisdictions to maximize the impact of available funding.