California Schools Face Soaring Insurance Costs After Sex Abuse Lawsuits

A recent state law lifted the statute of limitations, driving a huge increase in payouts by school districts and government agencies.

Published on Feb. 24, 2026

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Since California made it easier for sexual abuse survivors to sue government agencies, victims have brought forth more than $3 billion in claims. School districts, counties, and other public agencies are now facing skyrocketing insurance premiums, forcing them to cut teacher positions, renovation projects, and other services that impact students.

Why it matters

The law that lifted the statute of limitations on sex abuse lawsuits was intended to bring justice to victims, but the financial burden on schools and local governments has had unintended consequences, including reductions in educational programs and other public services.

The details

School districts and other public agencies are part of risk pools, so when one agency faces a large settlement, premiums increase for everyone. Research shows that in the year after an average school district paid a $1 million or more settlement, student test scores in math and reading dropped by several percentage points as schools had to cut back on tutoring, after-school programs, and other offerings.

  • In 2019, California passed a law that lifted the statute of limitations on sex abuse lawsuits.
  • Since the law passed, victims have brought forth more than $3 billion in claims against government agencies.

The players

Dorothy Johnson

A legislative advocate for the Association of California School Administrators.

Faith Borges

A legislative advocate for the California Association of Joint Powers Authorities.

April Moore

The superintendent of Sierra Sands Unified, a medium-sized school district in Ridgecrest, California.

John Manly

A partner at a law firm that has represented thousands of victims who say they were abused in California public schools.

Nancy

A woman who sued Los Angeles Unified in 2020 after she said she was abused in middle and high school.

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What they’re saying

“We desperately need guardrails, or the situation will become very dire.”

— Dorothy Johnson, legislative advocate for the Association of California School Administrators

“Classrooms are being impacted because there's money being pulled out of the education system. I don't think that there's an understanding that these really, truly are taxpayer dollars. We need to have an informed conversation about where this money is coming from.”

— Faith Borges, legislative advocate for the California Association of Joint Powers Authorities

“What kind of idiot politician is going to put up a bill that protects people like Epstein? It's radioactive. Any attempt to limit these lawsuits is a cynical, disgusting, wrong-headed attempt to keep the public from knowing the full extent of this problem.”

— John Manly

“I felt I had no voice, no power. I want to see policies change. Unfortunately, money gets people's attention.”

— Nancy

“Obviously victims deserve justice, but the effects of AB 218 are real.”

— Ryan Alsop, Napa County chief executive officer

What’s next

Assembly Speaker Robert Rivas has asked several legislators to 'explore solutions that strike the right balance on this critical issue: ensuring meaningful access to justice for all survivors, while safeguarding schools and cities from financial consequences that could lead to lost or reduced services.'

The takeaway

This issue highlights the complex balance between providing justice for survivors of sexual abuse and the unintended financial consequences on schools and local governments, which are being forced to cut essential services and programs that impact students and communities. Policymakers will need to find a way to address both concerns.