Deal to recoup Games costs is reached

By the Editorial Team · Sunday, June 28, 2026

Los Angeles city officials and the 2028 Olympic organizing committee have reached a tentative deal on reimbursement for public services during the Games, with upfront funding secured for non-federally covered costs like traffic control and trash collection. The agreement aims to limit financial risk to taxpayers by outlining federal, city, and contingency funding sources for security and service expenses, pending final approval and detailed contracts by late 2027.

Los Angeles city officials and the organizing committee for the 2028 Olympic and Paralympic Games have reached a tentative agreement outlining how the city will be reimbursed for public services provided during the event. The proposed arrangement, which still requires approval from Mayor Karen Bass and the City Council, aims to secure upfront funding from LA28, the privately run organizing committee, for services not covered by federal reimbursements, including traffic control and trash collection.

Security costs, particularly at high-security venues, will follow a slightly different process. The city intends to seek reimbursement for policing and related expenses from the federal government. However, if federal funds fall short, the agreement stipulates that LA28’s contingency fund—mandated under a 2021 deal and currently set at $270 million—would be tapped to cover any remaining city expenses. City Administrative Officer Matt Szabo, who led the negotiations, acknowledged that in cases of significant financial shortfall by the organizers, it might be difficult for the city to fully recoup its security expenditures.

The 2021 agreement also requires LA28 to reimburse the city for any services exceeding normal daily operations across various locations, including downtown Los Angeles, Exposition Park, and Venice. President Trump’s 2021 legislation allocated $1 billion toward security, planning, and other costs for the Games, yet concerns remain among some elected officials about potential gaps in funding after the event’s conclusion or possible security expenses surpassing federal allocations.

The new tentative agreement, known as the Enhanced City Resources Master Agreement, will soon be reviewed by the City Council’s ad hoc committee on the Olympic Games and subsequently by the full council. Despite the progress, specific details about taxpayer-funded services and their costs at each venue are expected to be finalized by mid-2027, with cost agreements due by October 31 of the same year. Additionally, separate service contracts must be negotiated with major city entities such as Los Angeles World Airports, the Port of Los Angeles, and the Department of Water and Power.

LA28 has expressed support for the deal, emphasizing its commitment to delivering a safe, secure, and financially responsible Games that will benefit Los Angeles long-term. The organizing committee is obligated to first cover its own expenses before any surplus funds from the contingency reserve can be distributed to the city. If the Games generate profits, those surplus funds cannot be redirected elsewhere until LA28 has met its fiscal responsibilities to the city.

The negotiations, conducted largely behind closed doors over the past year, were delayed by nearly nine months due to the inherent complexity of organizing the Games. City officials say the agreement represents a significant step toward ensuring that the 2028 Olympics are fiscally responsible and minimize financial risk to Los Angeles taxpayers.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.