SANTA FE, Mexico / RankWire.AI / – After a three-week bench trial, a New Mexico state judge ordered Meta to pay $567 million to establish a youth mental health abatement fund. Judge Bryan Biedscheid issued the ruling in Santa Fe, stating that Facebook and Instagram created a public nuisance. The platforms worsened a mental health crisis among teenagers and failed to protect children from online dangers. The money will mainly go toward clinical treatment and child safety programs across the state.
This latest order follows a previous $375 million jury award issued against Meta in March 2026 during the early stage of the state’s legal case. In that case, jurors found Meta violated New Mexico consumer protection laws by misrepresenting safety features for younger users. When combined, the two rulings mean Meta must pay $567 million for teen mental health funding in New Mexico, with a total liability of $942 million from the state’s enforcement action led by New Mexico Attorney General Raúl Torrez.
The detailed court decree states that $420 million of the new funds will directly support mental health treatment services for children across New Mexico. The rest will fund public education efforts, early screening programs, and community prevention over the next five years. The ruling also requires Meta to enforce default private settings for accounts of users under 18, limit daily usage, restrict notification pushes, and enhance screening for child sexual abuse material.
Meta Ordered to Pay $567 Million in New Mexico for Teen Mental Health Support
This enforcement action in Mexico is among the largest penalties against a major tech company over child safety practices. Attorney General Torrez filed the lawsuit after investigations revealed that algorithmic recommendation systems exposed minors to predatory contact and explicit content. While the court ordered many product changes, Judge Biedscheid did not require mandatory identity tracking for users under 13, citing federal privacy laws under the Children’s Online Privacy Protection Act.
Meta’s corporate representatives confirmed after the hearing that the company plans to appeal the decision to higher courts. In an official statement, Meta said it has invested heavily in creating age-appropriate features, parent supervision tools, and automated content moderation. Company officials argued that the ruling misinterprets platform design and overlooks internal engineering efforts to remove harmful content and identify bad actors on social networks.
Judge Allocates Funds for Prevention and Early Detection Efforts
This ruling comes at a time of increased legal pressure on social media platforms across federal and state courts in the United States. Over 40 state attorneys general and hundreds of local school districts have filed similar lawsuits. They allege that platform design choices promote compulsive use among teens. The New Mexico case sets a significant legal precedent as other states prepare for federal court trials later this year.
As Meta prepares for appellate review of the $567 million order, state officials are planning how to distribute the funds. They said that priority will be rural healthcare access, behavioral counseling, and school health centers. The remedies set by Thursday’s ruling will stay in effect for five years, pending the outcome of Meta’s appeal.