New Mexico’s landmark decision raises a bigger question: How can social media settlement dollars help young people?

Update, August 10, 2026: On August 6, District Judge Bryan Biedscheid issued a ruling in the second phase of the state's lawsuit against Meta, ordering the social media company to pay $567 million towards an abatement fund to support prevention, screening, and treatment services for youth. The breakdown of the abatement measures within the fund can be found in the judgment (starting on page 45). 

Earlier this year, a jury in Santa Fe made history. They found that Meta, the company behind Facebook and Instagram, had broken New Mexico's consumer protection laws by hiding the truth about how its platforms harm kids. The jury ordered Meta to pay $375 million, making it the largest civil penalty ever handed down against a social media company in the United States.

That case is still not over. In a second phase, New Mexico Attorney General Raúl Torrez asked a judge for even more: nearly $800 million in additional relief, along with court-ordered changes to how Meta's platforms work in the state.

In a recent virtual roundtable with afterschool advocates in New Mexico, Attorney General Torrez recently shared the story behind the case. The roundtable, entitled “Youth Digital Safety & The Role of Afterschool Programs,” was hosted by the New Mexico Out of School Time (NMOST) Network on June 24th, and featured a panel of expert practitioners in the state who are working to identify strategies for helping young people navigate technology in healthier ways.

What the Attorney General told NMOST

Torrez walked participants through what his office uncovered. Meta, he said, built its platforms using psychological tricks that are intended to keep people scrolling for hours. During the investigation, his office also found that Meta's recommendation systems were problematically effective at connecting predators with children. In multiple undercover operations, agents posing as underage girls online were contacted by adults seeking to meet up in person.

Torrez explained why this case matters beyond New Mexico. For years, tech companies have relied on a legal shield claiming they aren't responsible for user-generated content on their platforms, but this is one of the first verdicts that found that the companies are still liable for deliberate platform design features.

When considering how funding could be used to help support young people, AG Torrez drew a comparison many afterschool advocates know well: the tobacco settlements of the 1990s. Billions of dollars were supposed to fund public health efforts, but states directed much of that money to other budget priorities instead.

Torrez was blunt about not wanting history to repeat itself with social media settlement funds. He also noted that while AGs are responsible for recovering the money in settlements like this, both AGs and legislators often have a say in where it goes, making now the perfect time for advocates to show their AGs and lawmakers real evidence that afterschool and youth development programs can counteract the types of mental health challenges that social media platforms exacerbate.

What program providers are already doing

After Torrez spoke, a panel of out-of-school-time providers shared strategies already working on the ground. TrueKids1 in Taos, NM runs a Digital Balance Initiative that helps families reset their relationship with screens, including an innovative 10-day "Family Digital Reset" challenge and a Flip Phone Challenge to help youth discover what it feels like to unplug. Warehouse 505 was another program featured in the panel that gives young people not only hands-on alternatives to screen time but also strategies to help them use digital tools in healthier ways, including a youth entrepreneurship program that teaches young people to create content rather than just consume it. A third program in the panel, The Boys & Girls Clubs of Santa Fe, takes a more direct approach: no cell phones allowed during program hours, paired with digital safety lessons for youth who have limited tech access at home.

Why this matters for afterschool & summer programs

All 3 programs make the same case that our team here at the Afterschool Alliance and our partners in the Fund IRL Coalition are focusing on: out-of-school time programs are vital tools for both limiting young people’s screen time and for providing young people with critical mental health supports. Young people need real relationships with peers and caring adults, not just rules about screen time.

As more states pursue their own claims against social media companies, the scale of what's at stake keeps growing. Just this month, Meta disclosed that 4 states (California, Colorado, Kentucky, and New Jersey) are seeking $1.4 trillion in penalties in a case headed to trial next month, and nearly 30 states now have active claims against the company. New Mexico's case may have been first, but it won't be the last—and it shows why advocates need to help shape these funding decisions before they're made, not after.

To stay up to date on developments around the social media lawsuits or learn more about how to join the Fund IRL Coalition, visit the website! You can also join the Fund IRL Coalition's upcoming webinar, "What Comes Next: Organizing for Youth Investment in the Social Media Litigation Landscape" on August 4 at 2 p.m. ET by registering online.