Vermont’s proposed $92.7 million Meta settlement awaits court approval

Vermont would receive $92,700,152 from Meta under a proposed multistate settlement that would also impose new limits on how people under 18 use Facebook and Instagram.

Attorney General Charity Clark announced the agreement on August 26, 2026, describing the guaranteed payment as the largest single-company settlement in Vermont history. The agreement remains subject to court approval and does not establish a final judgment that Meta committed the allegations in Vermont’s lawsuit.

The proposal matters to Vermont families for two reasons: Some platform changes could begin within 15 to 30 days after approval, while more technical age-assurance systems could take several months. It also creates a public-money question. Vermont lawmakers, not the Attorney General, would decide how the settlement proceeds are spent.

Proposed limits for users under 18

If approved, the settlement would require Meta to establish a default two-hour daily limit for users under 18. A parent could lift that limit under the proposed terms. If other major social-media platforms agree to comparable provisions, the daily limit would drop to one hour.

Meta would also have to impose a default overnight block for minors from midnight to 6 a.m., which a parent could lift. If comparable agreements are reached with other major platforms, the overnight block would expand to 10 p.m. to 7 a.m.

Notifications would be blocked by default from 10 p.m. to 7 a.m. and during the school day, generally from 8 a.m. to 3 p.m. during the school year.

The proposed agreement also calls for stronger parental controls, improved age-assurance measures to identify users under 18 and measures to identify and remove children under 13 from Meta’s platforms. Other requirements include additional safeguards involving bullying, eating-disorder material, suicide and self-harm content, limits on visible like or reaction counts, and a ban on cosmetic-procedure image filters for users under 18. Meta would also have to provide an enhanced process for teens to report potentially harmful content and retain an independent auditor to monitor compliance.

Most of the proposed protections are expected to remain in place for 10 years. The daily-use and nighttime restrictions are initially set for five years unless other social-media companies adopt comparable terms, according to Vermont reporting and Meta’s description of the agreement.

What Vermont alleged

Vermont sued Meta in 2023, alleging that the company designed Instagram and other products to encourage compulsive and excessive use by children and teenagers. The lawsuit also alleged exposure to harmful content and misleading or inadequate data practices.

The state’s allegations included claims involving anxiety, depression, disrupted sleep, suicidal thoughts, altered psychological development and content promoting violence, sexual material, extreme weight loss and disordered eating. Those claims remain allegations from Vermont’s lawsuit. The proposed settlement would resolve them without a trial finding on the merits.

About $3.9 million of Vermont’s payment stems from separate claims concerning Meta’s alleged sale of personal data to third parties, including Cambridge Analytica, according to reporting by Vermont news organizations.

The money would arrive over several years

Vermont’s guaranteed payment would be structured rather than paid as a lump sum. The state is expected to receive annual installments of about $8.8 million over multiple years.

Vermont could receive approximately $34 million more if other major social-media companies reach comparable agreements. That money is conditional and should not be counted as guaranteed revenue. Depending on how the contingency is described and rounded, news reports have referred to a possible total of about $127 million; the settlement materials identify a possible maximum of approximately $126.98 million.

The settlement does not provide individual checks to Vermont residents. The Legislature would decide whether to direct the proceeds toward youth mental-health services, digital-safety programs, consumer protection, the general fund or other lawful purposes. Clark’s office has said it may advise lawmakers but will defer to the Legislature’s spending role.

What happens next

A court must review and approve the proposed agreement before it becomes enforceable. Until that happens, families should not assume that the new time limits, overnight blocks, notification restrictions or age-assurance measures are already in effect.

After approval, some operational changes could appear within weeks. Age-assurance and other technical compliance systems are expected to take longer. The settlement applies to Meta’s platforms; it does not automatically impose the same requirements on TikTok, YouTube, Snapchat or other services.

Clark’s office is pursuing related claims involving other social-media companies, including TikTok and Snap. Those cases could affect whether Vermont becomes eligible for additional Meta funds, but no extra payment is guaranteed.

For Vermont families, the immediate issue is whether and when Meta changes its teen settings. For taxpayers, the next important steps are court approval and the Legislature’s decisions about how the installment payments will be used.

Sources

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