– SANTA FE, New Mexico
On Thursday, August 6, 2026, a New Mexico state court ordered Meta Platforms the parent company of Facebook and Instagram to contribute $567 million to a dedicated fund aimed at addressing the mental health harm suffered by children and adolescents using its social media services. Presiding District Court Judge Bryan Biedscheid issued the ruling in Santa Fe, marking the final stage of a major civil case initiated by Attorney General Raúl Torrez. The court determined that Meta’s platforms constitute a public nuisance and play a significant role in the youth mental health crisis facing the state.
This new payment comes on top of $375 million in civil penalties imposed by a jury in early March 2026, bringing Meta’s total financial liability in the matter to approximately $942 million. The earlier verdict established that the company had repeatedly violated New Mexico laws regarding unfair practices by concealing clear information about the psychological risks and potential for child exploitation present on its platforms. The new fund will operate for five years, the majority of the money about $420 million will be allocated to clinical treatment, while the remainder will finance prevention campaigns, early detection, service coordination, and ongoing evaluation.
Judge Biedscheid described Meta’s business model in industrial terms, comparing the platforms to factories that produce advertising and content but generate psychological harm and the exploitation of minors as unwanted byproducts requiring corrective measures. Evidence presented demonstrated that features designed to foster engagement exploit the still-developing brains of adolescents, contributing to higher rates of anxiety, depression, and sleep disorders among the state's youth. The lawsuit, initially filed by Torrez in 2023, argued that Meta’s design choices and inadequate safety measures allowed harmful interactions to proliferate.
The order also imposes specific operational requirements applicable to accounts belonging to users under the age of 18 in New Mexico. Meta must delete accounts belonging to children under 13 along with any data collected from them set teen profiles to private by default, block most contact with adults and recommendations involving minors, silence many push notifications during school and overnight hours, establish monthly platform usage limits for minors' accounts, hide ‘like’ counts by default, and prohibit romantic or sexual interactions with its AI chatbots when minors are involved. Additionally, the company is required to improve its age-estimation methods while respecting federal privacy limits and submit periodic compliance updates to the court and state authorities.
Meta has announced that it rejects the ruling and plans to appeal, insisting that it has already invested significantly in protective tools for young users and asserting that the allegations distort its safety record. Attorney General Torrez hailed the decision as a major step for families concerned about the impact of social media on children and suggested it could serve as a model for similar initiatives elsewhere. The ruling comes amidst growing nationwide legal scrutiny regarding how major platforms influence the mental well-being and online safety of younger audiences.