LAUSD Borrows $250M More to Settle Sex Abuse Claims

District's total sex abuse settlement costs now exceed $1 billion with interest and fees

Published on Feb. 21, 2026

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The Los Angeles Unified School District has approved an additional $250 million in bonds to fund payouts for sexual misconduct claims, on top of $500 million authorized less than a year ago. The total cost, including financing, is expected to exceed $1 billion and will be paid out of the district's general fund over at least a decade.

Why it matters

The mounting costs of sex abuse settlements are straining LAUSD's budget and competing with funds needed for teacher salaries, school resources, and student services. This issue is not unique to LAUSD, as school districts across California face similar liabilities under a 2019 law that expanded the window for filing childhood sexual abuse claims.

The details

LAUSD Superintendent Alberto Carvalho said the district is 'exhausting funds' to satisfy the 'multimillion-dollar judgments' against it, many dating back decades. The district is lobbying for legislative relief, but more claims could still be forthcoming. Between 2020 and mid-2025, around 370 people came forward with child abuse claims against LAUSD under the 2019 law.

  • In 2019, Assembly Bill 218 was passed, opening a three-year window for adults to file lawsuits over childhood sexual abuse going back to the 1940s.
  • Between January 2020 and mid-2025, approximately 370 people came forward with child abuse claims against LAUSD under the provisions of AB 218.
  • In mid-2024, the annual payment for the earlier $500 million bond could reach as high as $50 million.

The players

Alberto Carvalho

Superintendent of the Los Angeles Unified School District.

Karla Griego

Newest member of the seven-person LAUSD Board of Education.

Michael H. Fine

Chief executive of California's Fiscal Crisis and Management Assistance Team, a state agency that works to identify and resolve financial, operational and data management issues related to school districts.

David Levine

Law professor at UC Law San Francisco.

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What they’re saying

“We are exhausting funds available to us to satisfy sex and molestation cases that have been brought against the district, in many instances, reflecting cases that go back decades, that the district is not willing — not able — to successfully defend.”

— Alberto Carvalho, Superintendent, Los Angeles Unified School District (latimes.com)

“There is only so much money available to LAUSD. If it has to pay upwards of $1 billion — counting interest on the bonds — to settle old, but worthy, claims there will be that many fewer dollars to educate our children now and in the future.”

— David Levine, Law professor, UC Law San Francisco (latimes.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow LAUSD to issue the additional $250 million in bonds.

The takeaway

The mounting costs of sex abuse settlements are straining LAUSD's budget and diverting funds away from education, raising concerns about the long-term impact on students and employees. This issue highlights the need for legislative reform to address the financial burden on school districts facing a flood of historic sexual abuse claims.