Meta must establish a $567 million fund to address youth mental health harms and child safety risks on Facebook and Instagram, according to a court order issued by Judge Bryan Biedscheid. The ruling marks an escalation in legal penalties against the tech giant, bringing the total financial liabilities in the state’s ongoing litigation to $942 million.
The newly mandated funds and operational restrictions stem from the second phase of a lawsuit filed in 2023 by New Mexico Attorney General Raúl Torrez. According to court documents, Judge Biedscheid concluded that Meta’s platforms substantially contributed to a public nuisance involving youth mental health crises and child sexual exploitation. Of the $567 million corrective fund, $420 million is earmarked directly for youth treatment services, with the remainder dedicated to prevention, screening, service coordination, and program evaluation over a five-year compliance period.
New Mexico Court Decisions Bring Meta’s Total Liability to $942 Million
The $567 million corrective fund builds upon a previous verdict delivered on March 24, 2026. In that initial phase, according to court records, a New Mexico jury found Meta liable for violations of the state’s Unfair Practices Act, assessing civil penalties to reach $375 million. Combined with the latest $567 million judgment for youth remediation, the total financial exposure ordered by the New Mexico court stands at $942 million.
While Meta faced financial penalties, the court’s injunction extends far beyond monetary sanctions. Judge Biedscheid ordered Meta to overhaul critical platform mechanics for minor users across Facebook and Instagram within New Mexico over the next five years. The restrictions target algorithmic recommendations, default privacy settings, usage caps, notification schedules, and age verification protocols.
Strict Operating Restrictions Imposed on Minor Accounts
Under the court order, Meta must implement a strict monthly usage limit for minor accounts in New Mexico. According to the judicial mandate, users under 18 years old must be restricted to a maximum of 90 hours per month across Facebook and Instagram, averaging roughly three hours per day. Additionally, push notifications must be disabled daily between 10:00 p.m. and 7:00 a.m., as well as during school hours from 8:00 a.m. to 3:00 p.m. on weekdays, excluding emergency safety alerts.
To curb predatory interactions, the court banned Meta from recommending accounts belonging to minors to unfamiliar adults. Adults without an existing connection can no longer initiate direct messages to teenage users, and Instagram accounts for users under 18 must default to private settings. Furthermore, like counters on posts must be hidden by default for minor accounts unless a parent or legal guardian authorizes the change.
Enhanced Age Verification and Meta’s Appeal Plans
The ruling forces Meta to upgrade its age estimation and verification infrastructure. Within two years, the company must deploy systems capable of identifying accounts likely operated by children under 13. Accounts flagged as potentially belonging to children under 13 will face a 30-day window to verify their age, failing which the accounts and associated personal data must be deleted.
Meta strongly contests the ruling and has announced plans to appeal the decision. According to company statements, Meta maintains that it has already introduced safety features, including Teen Accounts, stricter privacy defaults, and advanced AI-driven age-estimation tools, arguing that court proceedings mischaracterize its safety efforts.
The New Mexico case is part of a broader wave of litigation against social media companies. More than 40 state attorneys general, alongside school districts and families, have filed lawsuits against Meta regarding the impact of its algorithms on young users, making the New Mexico outcome a closely watched benchmark for digital regulation.
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