Coordinating Federal and State Funding for the 2028 Olympics

Key Takeaways

As California prepares to host the 2028 Olympics, a complex dance of financial coordination is unfolding between federal and state governments. This monumental undertaking represents more than just a sporting event—it’s a catalyst for transformative infrastructure development that will shape California’s landscape for decades to come. The success of the 2028 Olympics hinges on effective California federal infrastructure funding strategies that align priorities, maximize resources, and create lasting public benefit.

The symbiotic relationship between federal and state funding mechanisms will determine whether California can deliver world-class facilities while addressing long-term infrastructure needs. With billions of dollars at stake and numerous stakeholders involved, the coordination of these funding streams represents one of the most significant public policy challenges facing both Sacramento and Washington in the coming years.

This article explores the intricate web of federal infrastructure funding for the Olympics in California, examining current funding plans, identifying key challenges, highlighting best practices for bipartisan cooperation, and demonstrating how technological innovation can enhance infrastructure development. We’ll also examine how policy advisors like The M2 Group are helping to navigate this complex landscape.

Current Federal and State Infrastructure Funding Plans

Overview of current funding allocations

The funding landscape for the 2028 Olympics involves a complex interplay of federal, state, and local resources. The Los Angeles Olympics Organizing Committee has projected a $6.9 billion budget, with infrastructure improvements representing a significant portion of this investment. While the private sector will shoulder much of the direct event costs, government funding is essential for the underlying infrastructure that will support the Games.

At the federal level, several key funding mechanisms are being leveraged:

• The Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) providing approximately $1.2 trillion nationwide for infrastructure development
• Department of Transportation RAISE (Rebuilding American Infrastructure with Sustainability and Equity) grants
• Federal Transit Administration’s Capital Investment Grants program
• Department of Energy funding for sustainable energy infrastructure

California’s state-level funding contributions include:

• The $7.6 billion transportation infrastructure package approved by the state legislature
• California’s Climate Commitment funds for sustainable development
• Strategic Growth Council grants for community development
• State bonds specifically allocated for Olympics-related projects

The coordination of California federal infrastructure funding for the Olympics requires aligning these diverse funding sources toward common objectives. This represents a significant departure from traditional infrastructure funding approaches, which often operate in silos with limited cross-jurisdictional coordination.

Impact of funding on infrastructure development

The strategic allocation of combined federal and state funding is reshaping California’s infrastructure landscape in preparation for the 2028 Olympics. Key projects receiving this coordinated funding include:

• Transportation: Expansion of the LA Metro system, including the Purple Line extension and Airport Connector, benefiting from both federal RAISE grants and state transportation funds
• Venue Development: Modernization of existing venues and construction of new facilities leveraging Department of Energy sustainability grants matched with state bonds
• Housing: Development of the Olympic Village with post-Games conversion to affordable housing using federal housing credits and state housing trust funds
• Digital Infrastructure: Implementation of smart city technologies through federal broadband funding and California’s digital infrastructure initiatives

The multiplier effect of coordinated federal infrastructure funding creates significant economic impacts. According to economic impact studies, every $1 billion in infrastructure investment generates approximately 13,000 jobs and $2 billion in economic activity. For California, the coordinated Olympics infrastructure spending is projected to create over 150,000 jobs and $18.7 billion in economic benefits.

However, the success of these investments depends on effective coordination between federal and state agencies. When alignment fails, projects face delays, cost overruns, and diminished public benefit—issues that have plagued previous large-scale infrastructure initiatives.

Challenges in Aligning Funding Priorities

Differences in federal and state priorities

Despite shared objectives, federal and state funding priorities for the 2028 Olympics often diverge in significant ways, creating coordination challenges. These differences stem from varying constituencies, timelines, and strategic objectives at each level of government.

Key areas of potential misalignment include:

• Timeframe disparities: Federal funding cycles often span multiple years with lengthy approval processes, while state funding may operate on more compressed timelines aligned with electoral cycles
• Geographic focus: Federal priorities may emphasize projects with national significance, while California prioritizes developments with direct local impact
• Compliance requirements: Federal funding comes with stringent regulatory requirements that may conflict with state procedures, creating administrative burdens
• Sustainability standards: Different environmental and sustainability benchmarks between federal agencies and California’s ambitious climate goals

These divergent priorities can lead to funding gaps for critical infrastructure components. For example, while federal funding might prioritize major transportation corridors connecting Olympic venues, state priorities might focus on local transit improvements that better serve community needs after the Games conclude.

The challenge of aligning state and federal funding coordination for the Olympics requires stakeholders to identify these disparities early and develop strategies to bridge the gaps. Without proactive coordination, projects may face delays, budget shortfalls, or compromised outcomes.

Strategies to overcome funding challenges

Successfully navigating the complexities of California federal infrastructure funding for the Olympics requires strategic approaches that bridge jurisdictional divides. Several proven strategies have emerged from previous large-scale infrastructure initiatives:

• Dedicated coordination offices: Establishing joint federal-state coordination offices with representatives from key funding agencies to streamline communication and decision-making
• Matching fund structures: Designing funding mechanisms that incentivize alignment through matching requirements, encouraging both levels of government to prioritize jointly-valued projects
• Regulatory harmonization: Identifying conflicts between federal and state regulations early and developing compliance approaches that satisfy both jurisdictions
• Long-term legacy planning: Focusing on infrastructure with enduring public benefit beyond the Olympics, creating common ground for prioritization

California is implementing several of these strategies through the Olympic Infrastructure Coordination Commission, which brings together federal, state, and local stakeholders to align funding priorities. This commission has established working groups focused on transportation, venue development, sustainability, and community benefits to ensure comprehensive coordination.

The commission’s early successes include securing joint federal-state funding for the LAX Airport Connector project, with the Federal Transit Administration providing 43% of funding matched by California state transportation funds. This project demonstrates how aligned priorities can accelerate infrastructure development while maximizing public benefit.

Effective state and federal funding coordination requires continuous stakeholder engagement, transparent decision-making processes, and flexible funding mechanisms that can adapt to changing circumstances. By emphasizing these principles, California and federal partners are establishing a foundation for successful infrastructure development leading up to 2028.

Bipartisan Infrastructure Coordination Best Practices

Successful examples of bipartisan cooperation

Bipartisan infrastructure approaches have proven essential for successful Olympic preparations in the past. Looking at both domestic and international examples provides valuable insights for California’s 2028 preparations:

• Salt Lake City 2002: Created the Olympic Coordination Committee that brought together Republican state leadership with Democratic federal representatives to streamline funding for transportation infrastructure
• Atlanta 1996: Established the Metropolitan Atlanta Olympic Games Authority with bipartisan governance to coordinate federal and state investments in venue development
• London 2012: Formed the Olympic Delivery Authority with cross-party support that maintained continuity despite government changes during the preparation period

These examples share common elements that contributed to their success: formalized coordination structures, clear decision-making authorities, and commitments that transcended political cycles. The Olympic Infrastructure Bond approved by California voters in 2022 reflects this bipartisan approach, having gained support from both Republican and Democratic state legislators who recognized the economic development potential.

At the federal level, the Olympic Infrastructure Coordination Act of 2023 demonstrates similar bipartisan cooperation, with sponsors from both parties emphasizing the national interest in successful Olympics preparation. This legislation established dedicated federal funding streams specifically for Olympics-related infrastructure while streamlining coordination requirements.

These bipartisan infrastructure approaches create political resilience that helps projects withstand changes in administration or political leadership—a crucial consideration given that preparations for the 2028 Olympics will span multiple election cycles at both state and federal levels.

Key strategies for effective coordination

Based on successful models of state and federal funding coordination, several key strategies emerge as essential for effective infrastructure development:

• Establishing clear governance structures: Defining decision-making authorities, accountability mechanisms, and dispute resolution procedures before projects begin
• Creating dedicated coordination positions: Appointing specific individuals responsible for cross-jurisdictional coordination with authority to resolve conflicts
• Implementing shared data systems: Developing common platforms for tracking funding allocations, project progress, and compliance requirements
• Adopting flexible funding mechanisms: Creating transferable funding authorities that can adapt to changing priorities or timeline adjustments
• Engaging stakeholders continuously: Maintaining open communication channels with affected communities, businesses, and advocacy groups throughout the development process

California’s implementation of these strategies includes the appointment of an Olympic Infrastructure Czar who reports to both the Governor and federal infrastructure coordinators. This position has statutory authority to streamline permitting processes and resolve jurisdictional conflicts, similar to the successful model used in the 2012 London Olympics.

The development of the Olympic Infrastructure Dashboard—a public-facing platform that tracks all federal and state funding allocations, project timelines, and performance metrics—exemplifies the commitment to transparency that underpins successful coordination. This platform allows stakeholders to identify potential misalignments early and address them before they impact project delivery.

By implementing these bipartisan infrastructure approaches, California is building a resilient coordination framework that can withstand political transitions and maintain consistent progress toward infrastructure readiness for 2028 and beyond.

Role of Technology and Innovation in Infrastructure

Integration of technology in infrastructure projects

The 2028 Olympics presents a unique opportunity to showcase technology in infrastructure projects that enhance both the event experience and long-term public benefit. Technological innovation is transforming traditional infrastructure development, creating smarter, more sustainable, and more adaptable systems that maximize return on public investment.

Key technologies being integrated into California’s Olympic infrastructure include:

• Smart transportation systems: AI-driven traffic management platforms that optimize flow between venues while collecting data for long-term mobility planning
• Digital twins: Virtual replicas of physical infrastructure that enable simulation, optimization, and preventive maintenance strategies
• IoT sensor networks: Distributed monitoring systems that provide real-time data on infrastructure performance, energy usage, and environmental impacts
• Renewable energy integration: Advanced microgrids and energy storage systems that ensure reliable power while showcasing sustainability
• Cybersecurity frameworks: Robust security protocols that protect critical infrastructure from digital threats

Federal agencies are supporting these technological innovations through dedicated funding streams. The Department of Energy’s Grid Modernization Initiative has allocated $175 million for Olympic venue energy systems that showcase next-generation renewable integration. Similarly, the Department of Transportation has provided $220 million through its Smart Cities program specifically for technology in infrastructure projects related to Olympic mobility.

California’s contribution to technology integration includes the $150 million Olympic Innovation Fund, which provides matching grants for infrastructure projects that incorporate cutting-edge technologies with practical applications. This fund has supported projects like the LA Metro Digital Mobility Platform, which will manage transportation during the Games while providing valuable data for future transit planning.

The integration of these technologies represents a significant evolution in California federal infrastructure funding approaches, emphasizing outcomes and performance rather than merely completing physical construction. This shift toward “infrastructure-as-a-service” models reflects modern understanding of infrastructure as dynamic systems rather than static assets.

Innovative approaches to infrastructure development

Beyond specific technologies, the 2028 Olympics is driving innovation in the fundamental approaches to infrastructure development, procurement, and financing. These innovations address longstanding challenges in public infrastructure delivery while creating models for future projects nationwide.

Innovative approaches being implemented include:

• Outcomes-based procurement: Contracts that specify performance requirements rather than detailed specifications, encouraging innovative solutions
• Flexible design standards: Infrastructure designed for adaptation after the Olympics to serve evolving community needs
• Public-private partnership models: Sophisticated financing arrangements that leverage private expertise while maintaining public benefit
• Community co-design processes: Engaging local communities in infrastructure planning to ensure facilities meet long-term needs
• Circular economy principles: Designing for material reuse and incorporating recycled content in construction

The Olympic Village development exemplifies these innovative approaches. Rather than a traditional procurement model, California implemented a “performance community” framework where developers compete based on post-Games community benefits and sustainability metrics rather than just construction cost. This approach has attracted innovative designs that incorporate modular construction techniques, allowing rapid conversion from athlete housing to mixed-income community housing after the Games.

Similarly, the Olympic Transportation Plan implements an integrated mobility model that views various transportation modes as a unified system rather than separate networks. This approach has secured combined federal infrastructure funding from multiple agencies by demonstrating cross-cutting benefits that transcend traditional funding categories.

These innovations in both technology and approach are creating a new paradigm for infrastructure development—one that emphasizes adaptability, sustainability, and long-term value rather than just initial construction. By showcasing these approaches, the 2028 Olympics will influence infrastructure development practices nationwide long after the closing ceremony.

The Influence of The M2 Group on Infrastructure Policy

How technologists and innovators can impact policy decisions

The M2 Group exemplifies how specialized policy advisors are reshaping the landscape of California federal infrastructure funding for the Olympics. As technologists and innovators increasingly influence infrastructure development, organizations with expertise in both policy and technology play crucial roles in bridging communication gaps between traditional stakeholders.

Key areas where The M2 Group impact on policy is evident include:

• Translating technical innovation into policy frameworks: Helping policymakers understand how emerging technologies can be incorporated into funding guidelines and regulatory structures
• Facilitating cross-jurisdictional communication: Bridging vocabulary and priority gaps between federal agencies, state departments, and local stakeholders
• Identifying regulatory barriers: Pinpointing outdated regulations that impede technological innovation and proposing modernized approaches
• Quantifying long-term benefits: Developing metrics that capture the full value of smart infrastructure beyond traditional cost-benefit analyses

Through these activities, policy advisors create pathways for innovation that might otherwise be blocked by traditional infrastructure development approaches. For example, The M2 Group facilitated workshops bringing together federal transportation officials with California technology innovators, resulting in revised funding guidelines that accommodate autonomous vehicle infrastructure—technology that will be showcased during the Olympics and benefit communities afterward.

Similarly, policy advisors have helped develop new environmental impact assessment frameworks that account for the lifecycle benefits of smart infrastructure, allowing innovative projects to demonstrate their sustainability advantages in ways that traditional assessments might miss. This work has enabled several Olympic venues to secure federal sustainability funding that might otherwise have been unavailable.

The ability to navigate complex regulatory environments while understanding cutting-edge technology makes firms like The M2 Group valuable intermediaries in the Olympic infrastructure development process, enabling bipartisan infrastructure approaches that might otherwise be hindered by technical or jurisdictional complexity.

Collaborative efforts for sustainable infrastructure solutions

Collaborative approaches to infrastructure development are essential for addressing the complex challenges of Olympic preparation while ensuring lasting benefits. The M2 Group and similar organizations facilitate these collaborations through structured stakeholder engagement that builds consensus around sustainable infrastructure solutions.

Effective collaborative frameworks include:

• Cross-sector working groups: Bringing together government officials, private developers, community representatives, and technical experts to align priorities
• Policy innovation laboratories: Creating spaces for testing new regulatory approaches before full implementation
• Joint funding mechanisms: Developing blended financing structures that combine federal grants, state funds, and private investment
• Shared impact metrics: Establishing common standards for measuring social, economic, and environmental outcomes across jurisdictions

These collaborative frameworks are producing tangible results for Olympic infrastructure development. The Transportation Innovation Alliance, facilitated by policy advisors including The M2 Group, has secured $1.2 billion in combined federal, state, and private funding for mobility projects that will serve the Olympics while providing lasting community benefits. This funding has been achieved through precisely the kind of state and federal funding coordination that is essential for large-scale infrastructure success.

Similarly, the Sustainable Venues Collaborative has developed standardized sustainability metrics that satisfy both federal requirements and California’s ambitious climate goals, streamlining the funding process for venue development while ensuring environmental performance. This approach has reduced permitting times by 35% while increasing the ambition of sustainability targets—demonstrating how collaboration can achieve both efficiency and enhanced outcomes.

The M2 Group impact on policy extends beyond specific projects to shaping the overall approach to Olympic infrastructure development. By emphasizing collaboration, sustainability, and long-term community benefit, policy advisors are helping to create an Olympic legacy that will benefit California long after the 2028 Games conclude.

This collaborative approach represents the future of infrastructure development—moving beyond siloed decision-making toward integrated solutions that maximize public benefit while efficiently utilizing public resources. The lessons learned from this approach will inform infrastructure development nationwide for years to come.

Conclusion

The successful coordination of California federal infrastructure funding for the 2028 Olympics represents more than just preparation for a two-week sporting event—it’s creating a blueprint for how different levels of government can effectively collaborate on complex infrastructure challenges. By implementing strategic coordination mechanisms, embracing technological innovation, and fostering bipartisan cooperation, California and federal partners are establishing new standards for infrastructure development.

The approaches highlighted in this article demonstrate how traditional challenges in cross-jurisdictional coordination can be overcome through dedicated governance structures, transparent communication, and flexible funding mechanisms. These strategies create resilience in the planning process while ensuring that investments deliver long-term public benefits beyond the Olympics.

As preparations continue, the role of specialized advisors like The M2 Group will remain essential in navigating the complex interplay between federal and state priorities, technological innovation, and community needs. Their expertise in building consensus, translating technical requirements into policy frameworks, and facilitating communication across stakeholders helps ensure that the massive infrastructure investments deliver maximum value.

For expert guidance on navigating federal-state policy coordination, The M2 Group provides strategic advisory services to help your organization succeed in the Washington policy landscape.