Good question. I believe historically the host country pays for the building of the infrastructure for the games. There are probably event locations that can be refurbished/updated for a lower cost. Not sure how much space there is in the area for building new event space.
As of Feb 2025, California is the "5th (or 6th) largest economy on the world stage, when considered a separate entity from the US". They're usually in the top 5. For comparison, Germany is 4th & Japan, India & UK follow CA. (Which is why Trump has to tread more gently than he'd like re CA.)
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