The head of the
"All of us at LA 2024 are disappointed in this news," bid committee chairman Casey Wasserman said in a statement two days after the Hungarian capital's mayor said they would drop their candidature.
The move leaves Los Angeles and Paris to duel for the right to stage the 2024 Summer Games, with the International Olympic Committee to vote on a host on September 13 in Lima, Peru.
"We have the highest respect for Budapest 2024's pioneering approach to designing and promoting their bid, and we look forward to continued friendship with our Hungarian colleagues," Wasserman said.
"The world is entering an era of unprecedented change. This is the 'new reality' for the Olympic Movement and it calls for new thinking.
"We believe that now, more than ever, the IOC must focus on selecting a 2024 Host City that redefines sustainability, connects the Olympic Movement and its benefits to the world's youth like never before and encourages future cities to bid for their Games."
Budapest's bid unravelled after a group of young activists collected more than a quarter of a million signatures demanding a referendum on the matter -- almost double the threshold required to trigger a ballot.
Critics of the Olympic drive, fearing spiralling costs and corruption, said taxpayers should decide how their money is spent.
LA 2024 officials say they can deliver a $4.8 billion (4.5 billion euros) Games with "no surprises" and no cost overruns. The Games are projected to bring in $5.3 billion in revenues and the LA bid is based around more than 30 venues that have already been built or are planned by private investors.
Contrary to Budapest, Wasserman cited survey figures that show strong local support for the LA bid.
"With 88 percent public support, and even higher support from young Angelenos, LA 2024 offers an innovative, low-risk and truly sustainable solution to help secure the future of the Olympic Movement in 2024 and beyond," he said.