Meta’s landmark $18 billion settlement: What it means for Maryland, Virginia and DC

WASHINGTON, D.C. - Nearly every U.S. state is set to collect a share of a historic $18 billion payout from Meta, resolving a pivotal, years-long lawsuit over the tech giant's role in the youth mental health crisis. 

The backstory:

The landmark settlement seeks to hold Meta accountable for features designed to attract young people's attention, forcing the company to add stronger child-safety measures to Facebook and Instagram.

If approved by the court, the deal will stop an avalanche of state-led litigation. The $18 billion payout, which is a fraction of Meta’s projected 2025 revenue of $201 billion, will be distributed over 10 years. States plan to use the funds to deliver critical mental health programs, after-school and summer activities, and digital literacy counselors for children.

Local payouts

By the numbers:

While California is slated to receive the largest sum of at least $1.5 billion, Virginia, Maryland and the District of Columbia are also securing hundreds of millions of dollars each. Here is exactly how much the DMV region will collect:

Virginia

• Guaranteed annual payment: $35,377,257.50
• Contingency annual payment: $15,247,664.86
• Cambridge settlement: $11,125,441.44
• Maximum total (all installments): $506,249,223.56

Maryland

• Guaranteed annual payment: $22,908,326.56
• Contingency annual payment: $9,873,532.05
• Cambridge settlement: $11,806,272.28
• Maximum total (all installments): $327,818,586.13

District of Columbia

• Guaranteed annual payment: $9,039,594.05
• Contingency annual payment: $3,896,082.12
• Cambridge settlement: N/A (Not included in this specific Cambridge distribution)
• Maximum total (all installments): $129,356,761.71

Where is the money going?

Dig deeper:

Each state has specific plans outlined as part of the settlement detailing how they will manage and spend their millions.

Virginia

• Payments will be deposited into the Virginia Attorney General’s Trust and Agency Fund and the Regulatory, Consumer Advocacy, Litigation, and Enforcement Revolving Trust Fund.
• The Attorney General has sole discretion to use the funds for any lawful purpose, including the enforcement or defense of consumer protection and data privacy laws, or other remedial purposes.

Maryland

• The money received by the Office of the Attorney General of Maryland shall be used in accordance with Maryland law.
• These funds can go toward consumer protection enforcement, consumer education, defraying the costs of the litigation, or any other public purpose.

District of Columbia

• Funds will be transferred directly to the D.C. Office of the Attorney General (OAG).
• D.C. can use the payment for any lawful purpose, including abatement, restitution, civil penalties, and litigation costs.
• The funds may also be applied to the District’s restitution or litigation support funds at the Attorney General's discretion.

State officials react

What they're saying:

For the attorneys general who spearheaded the litigation across the DMV, the historic financial penalty is secondary to the sweeping, mandatory safety changes designed to protect children.

Maryland

"This settlement is historic, both in size and in scope," said Maryland Attorney General Anthony G. Brown. "It holds Meta accountable for years of putting profit ahead of our children’s wellbeing, and it puts real, enforceable safeguards in place: hard limits on screen time, protections against harmful content, and stronger parental controls. Every parent deserves to know that when their child opens Instagram or Facebook, these platforms are designed with their child’s wellbeing in mind, not just to capture their attention. My office will continue holding technology companies accountable for not putting children first." 

Virginia

"For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health. I am elated to announce a settlement agreement that will put an end to these dangerous practices and deliver meaningful relief that will protect children from online harm," said Virginia Attorney General Jay Jones. "For the past five years, this office and its dedicated public servants have stood tall against one of the largest tech giants in the country and refused to back down in the face of costly and time-consuming investigations, legal battles, and sophisticated legal schemes to prevent accountability. Today’s historic settlement proves that no matter how deep a company’s pockets, or how vast their legal armies, when major corporations and Big Tech companies put the safety of our children at risk to turn a profit, Virginia will bring them to justice. With this relief, Virginia will finally be able to put substantial resources behind initiatives to undo these harms, prevent future harms and change the face of how young people interact with social media for years to come by continuing to hold social media companies accountable."  

District of Columbia

"Meta intentionally exploited kids for profit and then lied about it, claiming its products were safe when its own internal research confirmed the platforms were addictive and harmful," said District of Columbia Attorney General Brian L. Schwalb. "This is a monumental public health victory for young people in DC and across the country, and the safety features Meta is required to install will fundamentally and immediately change how young people use Instagram and Facebook. The physical, mental, and emotional harms that intentionally addictive social media platforms inflict on youth — and particularly teenage girls — are widespread across the tech industry, and this successful, coordinated multistate litigation has resulted in Meta being the first platform to come to the table and agree to such comprehensive reforms. It will not be the last."