Councilman Richard Alarcon announced the reward at City Hall on Tuesday morning. The violent attack occurred in Alarcon's district on Polk Street in August at a 5-year-old's birthday party.
Investigators said everyone was outside watching the kids enjoy a bounce house when two suspected gang members pulled up and opened fire with a shotgun.
A total of six people were wounded including an 11-year-old and 12-year-old. Detectives said the suspects were targeting someone at the party.
Police have very little to go on, but they hope new information will come in light of the award.
"Particularly during these tough economic times, it could be the kind of stimulus to get somebody to stand up against a perhaps a very real fear of retaliation, so whatever it takes," said Alarcon.
Although there is no real description of the suspects, the car they drove is described as a red compact four-door, possibly a Honda Accord.
If you have any information regarding this shooting, you're urged to contact the Los Angeles Police Department at 1-877-LAPD-24-7 or 1-877-527-3247.