SANTA FE, Mexico / RankWire.AI / – A court in New Mexico has ordered Meta to pay $567 million into a dedicated youth mental health fund. The decision came after the court ruled that the company’s platforms are a public nuisance. Judge Bryan Biedscheid of the First Judicial District Court in Santa Fe delivered this verdict after a three-week bench trial. The court found that Facebook and Instagram significantly contributed to a youth mental health crisis. It also concluded that Meta failed to protect minors from online harm and exploitation.
This latest order follows a separate $375 million jury award issued against Meta in March 2026. This occurred during the initial phase of the state’s legal case. In that earlier ruling, jurors determined that Meta violated New Mexico consumer protection laws by misrepresenting safety features for young users. When combining both rulings, Meta faces a total liability of $942 million. This amount stems from the enforcement action led by New Mexico Attorney General Raúl Torrez. The company is now obligated to allocate funds for teen mental health initiatives in the state.
Under the detailed court order, $420 million of the new funds will directly support mental health treatment services for children across New Mexico. The remaining funds will be used for public education campaigns, early screening programs, and community prevention efforts over the next five years. The court also mandated strict operational requirements for Meta. These include enforcing default private settings for accounts of users under 18, limiting daily engagement time, restricting notification pushes, and improving screening for child sexual abuse material.
Meta Must Pay $567 Million in New Mexico for Youth Mental Health Funding
This enforcement action in Mexico stands as one of the largest fines ever imposed on a major tech firm over child safety concerns. Attorney General Torrez filed the lawsuit after investigations revealed that Meta’s algorithms often exposed minors to predatory contact and explicit content. Although the court ordered extensive product modifications, Judge Biedscheid chose not to require mandatory identity tracking for users under 13. He cited federal privacy protections established under the Children’s Online Privacy Protection Act.
After the court session, Meta representatives confirmed that the company plans to appeal the decision to higher courts. In an official statement, Meta stated it has heavily invested in creating age-appropriate features, parent tools, and automated moderation systems across its platforms. Company leaders argued that the ruling misrepresents the platform architecture and ignores their internal efforts to remove harmful content and identify malicious actors on social networks.
Judge Orders Funds Toward Prevention and Early Detection Programs
This ruling comes amid increasing legal pressure on social media companies in the United States. Over 40 state attorneys general, along with numerous local school districts, have filed similar lawsuits. They allege that platform design choices encourage compulsive usage among teens. The New Mexico case sets a significant legal precedent as other states move toward trials in federal courts later this year.
While Meta prepares for appellate review of the $567 million payment, state officials are considering how to distribute the funds. They plan to prioritize rural healthcare, mental health counseling, and school-based health services. The court’s mandates will remain in effect for five years, pending Meta’s formal appeal outcome.