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States gain control of billions from tech settlement funds for youth mental health programs
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States gain control of billions from tech settlement funds for youth mental health programs

Sep 7, 2026

States are gaining control of billions of dollars from a national Meta Platforms settlement over youth social media addiction. In Wisconsin, a Supreme Court ruling gives the next attorney general elected on November 3 sole authority over at least $219 million, which incumbent Josh Kaul plans to spend on youth mental health. Meanwhile, California lawmakers debate spending its $2.1 billion share on school behavioral health specialists or establishing an eSafety Commission to enforce compliance.

Meta settlement allocation authority

  • ▪Wisconsin Supreme Court Justice Rebecca Dallet wrote for the majority that state law requires depositing settlement funds into the general fund but does not restrict where they are credited afterward.
  • ▪Wisconsin Supreme Court Justice Rebecca Bradley dissented from the July 2026 ruling, accusing the majority of ignoring the law to favor Democratic political interests.
  • ▪A July 2026 Wisconsin Supreme Court ruling granted the state attorney general sole authority to disperse federal settlement funds, ending a seven-year dispute with the state Legislature.

Wisconsin attorney general election stakes

  • ▪The winner of the November 3, 2026 Wisconsin attorney general election will control the distribution of the state's share of a national Meta Platforms settlement.
  • ▪Republican candidate Eric Toney, the Fond du Lac County district attorney, has not published a statement on how he would spend Wisconsin's $219 million Meta Platforms settlement share.
  • ▪Democratic Attorney General Josh Kaul stated that Wisconsin will receive between $219 million and $313 million over several years from the national Meta Platforms settlement.

Youth mental health funding proposals

  • ▪Wisconsin Attorney General Josh Kaul plans to spend the state's $219 million Meta Platforms settlement share on youth mental health programs if he is reelected.
  • ▪California Assemblymember Mia Bonta proposed using California's $2.1 billion Meta Platforms settlement funds to hire school behavioral health specialists to treat youth mental health issues.
  • ▪California health committee chairs Mia Bonta and Akilah Weber Pierson advocated using Meta Platforms settlement funds to backfill youth well-being programs impacted by federal budget cuts under H.R. 1.

Social media enforcement mechanisms

  • ▪California bill AB 1709 proposes establishing a seven-member eSafety Commission to help the state attorney general enforce restrictions on personalized feeds and infinite scrolling.
  • ▪California Assemblymembers Josh Lowenthal, Buffy Wicks, Rebecca Bauer-Kahan, Joe Patterson, and Josh Hoover proposed using Meta Platforms settlement funds to police social media compliance.

Historical settlement comparison context

  • ▪Wisconsin and its local governments are scheduled to receive $866 million between 2022 and 2038 from the 2021 national opioid settlement.
  • ▪Wisconsin's Meta Platforms consumer protection settlement is the second largest in state history, following the 1998 Master Settlement Agreement with tobacco manufacturers.
  • ▪Wisconsin has received an estimated $3.5 billion since 1999 under the 1998 tobacco Master Settlement Agreement, which is directed to the state's Medical Assistance Trust Fund.

Debatable claims

  • ▪State legislatures should control the distribution of legal settlement funds
  • ▪States should spend Meta settlement funds on youth mental health services rather than regulatory enforcement

2 sources

Urbanmilwaukee
The State of Politics: Next Attorney General Will Control $219 Million Legal Settlement
View source article
Politico
California just won $2.1B from Meta. Here’s how the state could spend it
View source article

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AI regulation & lawsuitsState-level AI lawsMental healthYouth mental health

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