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States Begin Announcing How They’ll Spend Their Share of $17 Billion Meta Settlement
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Teenagers hold smartphones in front of a Meta logo in this illustration taken on Sept. 11, 2025. (Dado Ruvic/Reuters)
By Aaron Gifford
10/13/2026Updated: 10/13/2026

Some states will use their share of the multibillion-dollar settlement from the Meta civil lawsuit to create online safety initiatives and provide youth recreation opportunities that don’t involve digital devices, a national policy center reported.

The announcement comes six weeks after the social media company agreed to pay out up to $17 billion following complaints that its Facebook and Instagram platforms were designed to addict children and collect their personal information. Forty-seven states, the District of Columbia, American Samoa, Puerto Rico, and the Northern Mariana Islands are expected to receive settlement money.

Two states have already announced partial plans for their share of the settlements, according to an Oct. 8 summary report from the Education Commission of the States organization.

Mississippi Attorney General announced on Aug. 26 that her state will get up to $270 million, but at that time she did not detail how some of it will be spent.

Education Commission of the States reported that $6 million will go to Mississippi’s state Department of Wildlife, Fisheries and Parks for outdoor recreation programs, and another $6 million for “out-of-school time” learning opportunities. Additionally, $6.8 million will fund youth support programs through the state Department of Mental Health, the report said.

Iowa, with $126 million in settlement money, will give $11 million to the Iowa Kids and Consumers Defense Fund to improve and enforce child and teen safety. Ten million dollars in grants will be made available to schools and community organizations to address social media harms, with another $10 million going to the Hawkeye State’s Digital Rescue and Prosecution Fund, Iowa Attorney General Brenna Bird said in a September news release.

Bird’s office will get $3 million to improve teen safety on social media platforms, and $7.3 million will be applied toward creating an “Ensuring Child Safety Online” fund.

“The Meta settlement was a victory for Iowa’s families,” Bird said. “Our kids will now be safer online. I promise to prosecute online predators, and fight to keep our kids safe.”

California has not detailed specific allocations for its share, up to $2.1 billion, but it recently enacted legislation prohibiting social media platforms from including addictive features available to users under 16. Leaders in the Golden State will also create an e-Safety Advisory Commission within the Department of Justice, according to a new release from Democratic state Assemblyman Josh Lowenthal.

Similarly, the Tennessee legislature passed a law creating a children’s digital protection fund to cover mental health and social media awareness education programs, according to the state legislature website.

Other states are expected to announce their plans in the coming weeks. The funds will be paid out over 10 years and must be spent on preventing mental health harms and supporting kids who have been hurt by social media use, the report said.

As part of the settlement, Meta also agreed to institute daily and nighttime use limits for children and strengthen measures to prevent children from accessing age-restricted content.

Florida opted out of the settlement. Attorney General James Uthmeier announced on Oct. 7 that he is pursuing litigation that would require Meta to remove children under 14 from its platforms “and turn off the features that hook teenagers, such as public like counts, infinite scrolling, auto-play, and late-night notifications.”

“[The settlement is] a slap on the wrist, and it does not cover a single child in this state,” he said in a video posted on his X social media page. “Parents, you are the first line of defense. We have your back and will bring accountability to big tech for preying upon our kids.”

The other two states that pursued their own legal action against Meta were Texas and New Mexico.

Matthew Vadum contributed to this report.

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Aaron Gifford has written for several daily newspapers, magazines, and specialty publications and also served as a federal background investigator and Medicare fraud analyst. He graduated from the University at Buffalo and is based in Upstate New York.