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News - States Outline Plans for Meta Settlement Funds

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States Outline Plans for Meta Settlement Funds

by Lilit Oct. 12, 2026

As states begin to receive their portions of the $17 billion settlement with Meta, several are putting the funds towards enhancing online safety protocols and providing offline activities for young people. This financial decision stems from allegations against Meta's platforms, Facebook and Instagram, for creating features that supposedly entice and retain young users while gathering their personal data illegally. The lawsuit resulted in a multi-state settlement with participation from 47 states, the District of Columbia, and several US territories. Recently, Mississippi and Iowa disclosed plans for their settlement shares. Mississippi intends to allocate $6 million to its Department of Wildlife, Fisheries and Parks for outdoor activities and another $6 million for extracurricular learning programs. Additionally, $6.8 million will be directed to youth support initiatives managed by the state's Department of Mental Health. Meanwhile, Iowa aims to improve social media safety, dedicating $3 million to teen protection on platforms and $7.3 million to establish a fund for ensuring children's online safety. In California, legislators have not specified the budget allocation but have activated new laws barring addictive elements on platforms for users under 16. An advisory commission on e-Safety is also being formed to oversee these efforts. Similarly, Tennessee's legislation has introduced a children's digital protection fund targeting mental health and educational programs on social media. Other states are expected to reveal their spending plans shortly, with financial disbursement set over the next decade to focus on preventing mental health issues linked to social media usage and supporting affected children. Further stipulations of the agreement necessitate Meta to impose daily and nocturnal usage caps for minors and bolster safeguards against accessing age-restricted material. Florida, opting out of the settlement, continues its pursuit of more comprehensive legal accountability for Meta, with Attorney General James Uthmeier seeking to curtail underage access to Meta's networks altogether. He criticized the settlement as insufficient, asserting a commitment to shielding youths from digital exploitation. Texas and New Mexico join Florida in pursuing separate legal actions against Meta. As the landscape of digital accountability evolves, these legal and legislative measures strive to offer concrete protection and resources to children navigating social media platforms.

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