New York will receive around $1 billion from Meta for mental health services and education as part of a larger settlement in a watershed trial over teen social media addiction, New York Attorney General Letitia James announced Wednesday.
The final payout will land between $819 million and $1.15 billion, depending on whether other social media giants — such as YouTube and TikTok — also agree to settle.
“With significant new resources for our communities and comprehensive restrictions on Meta’s platforms for young people, we are taking a major step towards breaking the cycle of social media addiction,” James said in a statement. “This groundbreaking plan sets a standard of reforms for all social media platforms, and I will continue to work to extend these protections across the industry.”
Theodore Parisienne / New York Daily News
New York Attorney General Letitia James is pictured in Queens on Friday, July 31, 2026. (Theodore Parisienne / New York Daily News)
The funds are intended for a mixed bag of services and programs for kids “to repair the harms of unhealthy social media use and prevent future damage,” according to a news release from the attorney general’s office.
Programs eligible for the funds include grants to schools to implement New York’s school cellphone ban, training for mental health professionals who work with young people, after-school and summer programs, and public health programs serving teens.
This school year is the second with phone restrictions in place statewide. The Daily News has reached out to the attorney general’s office for more information about how the grants will be divided across the state, and when schools could see the funding.
Cell phone pouches are pictured on the first day of school at HBCU Early College Prep High School in Queens, New York, on Thursday, Sept. 4, 2025. (Michael Appleton / Mayoral Photography Office)
The settlement with Meta is the largest reached with one company in the history of the New York attorney general’s office, according to the release.
“Children in New York and nationwide are suffering while companies like Meta reap immense profits by intentionally addicting them to their social media platforms,” James said. “We cannot allow social media companies to continue fueling the growing rates of low self-esteem, isolation, and depression among our youth.