In August, Meta agreed to pay at least $12.1 billion to 47 states, Washington, D.C., and three U.S. territories to settle claims that Instagram and Facebook were designed to hook young users. The deal also forces real changes to how kids use those apps.
For families in our region, the numbers are large. New Jersey, Pennsylvania, and New York are guaranteed a combined $1.8 billion over the next 10 years. Here’s what each state gets, who decides how the money is spent, and what changes are required.
What each state will receive
| State | Guaranteed over 10 years | Per year | Maximum if other platforms follow |
| New Jersey | $525.6 million | $52.6 million | $752.2 million |
| Pennsylvania | $492.8 million | $49.3 million | $705.2 million |
| New York | $789.5 million | $78.9 million | $1.13 billion |
Source: the settlement agreement filed in federal court. Each state also gets a one-time payment from a separate Facebook privacy settlement ($20.3M NJ, $23.8M PA, $29.9M NY), which is why some announcements cite slightly higher figures.
The money arrives in 10 installments. States began receiving first payments this fall, and the rest come every Jan. 15 through 2035.
The “maximum” column depends on other companies. States collect the extra only if Snapchat, TikTok, and YouTube adopt the same time limits, and the largest of them owe the state comparable money. If not, that money stays with Meta. In other words, the next round of lawsuits will decide whether states see the rest. Pennsylvania has already sued Snap and TikTok.
What Meta has to change
For users under 18 on Instagram and Facebook, Meta must:
- Verify ages more reliably
- Cap combined use at two hours a day, with pauses at 15 minutes of continuous scrolling and again at 60 and 90 minutes
- Block access from midnight to 6 a.m.
- Stop push notifications during the school day
- Hide like counts and limit beauty filters
- Make parental controls easier to use
- Submit to independent audits
These rules last five years. A stricter 10-year phase kicks in if the other major platforms match them (NJ Attorney General).
Who decides how the money is spent
The settlement suggests uses: youth crisis lines and 988, after-school and summer programs, youth mental health services, a digital wellness education fund, digital literacy counselors, phone-free school zones, and grants to school districts. But it’s a menu, not a mandate. Each state can use its share for any lawful purpose its attorney general is authorized to pursue.
- New Jersey: The Attorney General controls the funds. No spending plan has been announced. Senate President Nicholas Scutari has said the money should go only to children’s mental health (New Jersey Globe). The state already has two new tools it could fund: the SPARK school mental health pilot and a new Social Media Research Center.
- Pennsylvania: The settlement sends the money to a fund run by the Attorney General, but state law says settlement money belongs in the General Fund. With a $5 billion budget gap, lawmakers are already debating who controls it (Spotlight PA).
- New York: Attorney General Letitia James has pointed to mental health services, phone-free classroom grants, training for school mental health staff, and after-school programs (NY Attorney General).
These decisions are being made now. If you have a view on where the money should go, tell your state legislators and your attorney general’s office.
