TEPCO has spent the last two-and-a-half years struggling to get on top of the problems at the complex.
Over the last few weeks, a steady stream of news has revealed seepage from tanks storing radioactive water, much of it used to cool molten reactor cores.
The government on Tuesday pledged to step in with a half-billion dollar plan to staunch leaks and stop groundwater from becoming polluted.
Skeptics said Tokyo was stumping up taxpayer cash to counter aggressive coverage in the foreign press and reassure the International Olympic Committee.
But supporters insist fears over Fukushima are genuinely overblown, particularly abroad.
Bid committee chief Tsunekazu Takeda has repeatedly insisted Fukushima has no impact on daily life in Tokyo and would not affect the Games.
He and others say it is safe to live, eat and drink in Japan, with produce from Fukushima and the surrounding region screened for radiation contamination.
Takeda has written to members of the IOC to persuade them "Life is completely normal" in the Japanese capital.
The current problems at Fukushima do not not affect Tokyoites, agreed Takashi Sawada, director general of the Atomic Energy Society of Japan.
"Seafood caught from the ocean is being inspected, while contaminated food is barred from the market," he said. "We should not be concerned at all."
Activists disagree, charging that cozy relationships between government, industry and regulators mean it is difficult to know the real truth.
Miwa Chiwaki, one of nearly 15,000 people who is suing TEPCO, said the situation is out of control.
"I have to question if we should really bring the Olympic Games in Tokyo," she said. "The Japanese government does not realize that the toxic water leaking is as serious as the nuclear accident itself."