California Governor Arnold Schwarzenegger signed legislation authorizing $250 million (EUR186 million) to underwrite the 2016 summer Olympics if Los Angeles is picked as the host city.
The money is to cover any cost overruns created by the games, and allows Los Angeles to meet a U.S. Olympic Committee requirement to qualify as the United States' candidate to host the games.
The USOC will meet on Saturday to pick either Los Angeles or Chicago as the U.S. candidate. The International Olympics Committee will make its decision on a host city in October 2009.
The summer games were held in Los Angeles in 1932 and 1984.
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