Full Breakdown
Los Angeles Reaches Tentative Deal to Secure Olympic Cost Reimbursements
6/29/2026, 5:06:03 AM
Core Agreement: Funding City Services for the 2028 Games
Los Angeles officials and the privately run LA28 organizing committee have reached a tentative “Enhanced City Resources Master Agreement.” The deal requires LA28 to provide advance funding for city services that are ineligible for federal reimbursement—such as traffic control and trash pickup—while the city will seek federal reimbursement for security costs at high-security venues. If federal reimbursement falls short, the city plans to draw on LA28’s contingency fund to cover the difference. The agreement also amends the 2021 contract to allow the contingency fund to be used for any shortfall in city-provided services.
Background & Context: Prior Agreements and Federal Funding
Under a 2021 agreement, LA28 must reimburse the city for any services that exceed normal daily levels and maintain a $270 million contingency fund. President Trump’s “One Big Beautiful Bill” allocated $1 billion for security, planning and related costs associated with the Olympics. Negotiations, conducted behind closed doors for a year, were delayed nine months due to the “inherent complexity of the 2028 Games,” according to city officials.
Key Figures & Groups
- Mayor Karen Bass – City’s chief executive, whose office oversees major events.
- Matt Szabo – City Administrative Officer and lead negotiator.
- Paul Krekorian – Executive director for Bass’ Office of Major Events.
- Jacie Prieto Lopez – LA28 vice president of communications and public affairs.
- LA28 Organizing Committee – Private entity responsible for Olympic planning and execution.
- Los Angeles World Airports, Port of Los Angeles, Department of Water and Power – Agencies required to negotiate separate service agreements with LA28.
Data & Statistics
- First-loss liability: $270 million the city would cover if LA28 incurs losses.
- Federal allocation: $1 billion earmarked for security and planning.
- Contingency fund: $270 million, to be used after LA28 meets its own costs.
- Service-agreement deadline: July 2027.
- Cost-finalization deadline: October 31 2027.
Why It Matters: Fiscal Safeguards and Long-Term Benefits
The agreement aims to protect Los Angeles taxpayers by ensuring that city services required for a safe and successful Games are prepaid or reimbursed. It also establishes a mechanism for surplus distribution only after the city’s financial obligations are satisfied, positioning the Olympics to generate lasting infrastructure and economic benefits for the region.
Official Statements & Responses
City Administrative Officer Matt Szabo emphasized that the deal secures necessary services while shielding taxpayers. Paul Krekorian highlighted Mayor Bass’ priority of fiscal responsibility and long-term benefit to Angelenos. LA28’s Jacie Prieto Lopez affirmed the organization’s commitment to a safe, secure, and fiscally responsible event.
Criticism & Opposition
Some elected officials and community groups have voiced concerns that the city could still face substantial payouts if the Games fail to turn a profit, and that security expenses might exceed the $1 billion federal allocation. Critics note that many service-cost details will remain unresolved for at least a year.
Conflicting Reports & Gaps
The agreement outlines reimbursement pathways but does not specify the exact amount the federal government will ultimately reimburse for security. Additionally, precise cost estimates for each venue’s services are pending final negotiations.
Verbatim Quotes
- “This deal ensures the 2028 Games will have the City services needed to be safe and successful, while protecting the taxpayers from footing the bill,” — Matt Szabo, City Administrative Officer
- “Mayor Bass’ priority is that the 2028 Olympic and Paralympic Games be fiscally responsible, protect taxpayers, and benefit Angelenos for decades to come,” — Paul Krekorian, Executive Director, Office of Major Events
- “We proudly stand behind this agreement which delivers on our commitment to execute a safe, secure, and fiscally responsible Games that benefits Los Angeles for decades to come,” — Jacie Prieto Lopez, LA28 Vice President of Communications and Public Affairs
- “inherent complexity of the 2028 Games,” — Matt Szabo, in a memo co-written with Sharon Tso
- “If LA28 does make money, it would not be allowed to distribute its surplus funds to any other organization until after it has covered its financial obligations to the city, according to the tentative agreement.” — Tentative agreement
What’s Next: Council Review and Implementation Timeline
The agreement will be presented to the council’s ad-hoc Olympic Games committee on Tuesday, followed by a full council vote. Service agreements with the airports, port and water authority must be finalized by July 2027, and the total cost of those services is to be agreed upon by October 31 2027. Once approved, the contingency-fund provisions will become operative, completing the financial framework for the 2028 Summer Olympics.
