The funds constitute a six-fold increase over last year's budget allocation and include the first new state money for urban forests in a decade.
Urban forests lead to better air quality, cleaner waterways and more wildlife.
Governor Davis announced the funding for the initiative at an Earth Day celebration where he helped students from Longfellow Elementary School plant trees. The event is part of an innovative landscaping effort to replace the sun-baked asphalt in the school playground with child and environment friendly grass and trees. The funds will be provided by the state's Forest Resources Improvement Fund, to be administered by the Urban and Community Forestry programs division of the California Department of Forest and Fire Protection.