Here’s who gets money in $16B Meta lawsuit settlement

Meta to pay $16.68 billion and add teen safety changes
Meta will pay up to $16.68 billion and make Facebook and Instagram changes aimed at protecting teen users.
Meta has agreed to pay out billions of dollars in a settlement to resolve claims about child safety on its social media platforms.
But the money isn’t going to individual users.
The company, which owns platforms like Facebook and Instagram, announced on Aug. 26 that it reached the agreement amid a federal trial in California over claims brought by attorneys general in 29 states. It includes more than $16 billion in payouts to states, but Meta estimates the total will reach $18 billion.
As part of the settlement, which is subject to court approval, Meta agreed to make changes for teenage users of its platforms.
Here’s what to know, including where the money goes.
Who gets money from Meta settlement?
The billions of dollars Meta agreed to pay out in the settlement will be going to individual states, not users.
According to the settlement agreement and a release from Meta, states can use the money to fund youth online safety initiatives. For example, states could use the money for the following:
- Crisis intervention services, such as the expansion and operation of the 988 Suicide & Crisis Lifeline and text-based youth crisis lines
- After-school or summer programs
- Youth mental health programming
- Hiring digital literacy counselors
- Training for medical providers on interactive media use and body dysmorphia
Meta said the payment will be distributed in annual installments over a 10-year period.
Meta to make changes to Instagram, Facebook. See usage restrictions
As part of the settlement, Meta agreed to implement changes to its platforms for users under 18. Pending court approval, some of the changes include the following:
- A default two-hour daily time limit that teens can only turn off with a parent’s permission.
- A “night mode” that blocks features on Meta’s apps between midnight and 6 a.m.
- A “school mode” that will mute notifications by default between 8 a.m. and 3 p.m.
- The number of likes and reactions on posts will be hidden by default.
- In addition to Meta’s existing policy to block teens from using cosmetic surgery filters, it will also block teens from using extreme makeup filters.
In a statement, Meta Chief Legal Officer CJ Mahoney called on other social media platforms to institute similar changes.
“As a parent, I’m proud of both the work Meta has done to protect kids historically, and of this new groundbreaking agreement,” Mahoney said.
California Attorney General Rob Bonta said in a statement that the settlement “will make social media less dangerous for our kids and make a world of a difference for children and their families.”
Melina Khan is a national trending reporter for USA TODAY. Keep up with her on X @melinakh and Instagram @bymelinakhan.