LAUSD Faces Over $1 Billion in Costs for Sex Abuse Settlements

Los Angeles Unified School District (LAUSD) is grappling with escalating costs related to sexual misconduct claims, now exceeding $1 billion, as a result of settlements and associated financing. The district has approved an additional $250 million in bonds to fund payouts to victims, building on a previous $500 million authorization less than a year ago.

AB 218 and the Surge in Claims

The financial strain on LAUSD stems largely from Assembly Bill 218 (AB 218), California legislation enacted in 2019. AB 218 extended the statute of limitations for filing civil lawsuits regarding childhood sexual abuse, allowing adults to sue over incidents that occurred decades ago. This has led to a significant increase in claims against school districts statewide, including LAUSD.

Financial Implications for LAUSD

The combined cost of the two bond issues, including financing, is projected to surpass $1 billion. LAUSD plans to repay these bonds from its general fund over at least a decade, a strategy designed to mitigate immediate budgetary pressures. The district is utilizing “judgment obligation bonds,” a financing instrument that allows funds to be drawn down as needed to cover settlements as they are reached.

Volume of Claims Received

Between January 1, 2020, and mid-2025, approximately 370 individuals came forward with child abuse claims against LAUSD under the provisions of AB 218.

District’s Position on Claims

Superintendent Alberto Carvalho stated that the additional funding is necessary because the district is “exhausting funds available to us to satisfy sex and molestation cases.” He further indicated that the district is often “not willing — not able — to successfully defend” many of these cases, which often relate to incidents from decades past.

Broader Context

The situation at LAUSD reflects a broader trend across California school districts, which are facing increased financial burdens due to the surge in sexual abuse claims enabled by AB 218. In June 2025, the LAUSD School Board initially authorized $900 million in borrowing to address these lawsuits.