SANTA FE, Mexico / RankWire.AI / – Meta Platforms Inc. has been mandated by a New Mexico court to pay $567 million to support programs focused on youth behavioral health treatment and prevention. The decision was issued after a three-week non-jury trial held in Santa Fe, where First Judicial District Court Judge Bryan Biedscheid concluded that the social media giant created a public nuisance through its flagship platforms, Facebook and Instagram. The court found that Meta’s engagement-oriented design worsened mental health issues among youth and exposed children in the state to online dangers.
This new financial ruling follows a separate $375 million jury verdict against the company in March 2026 during the initial phase of New Mexico’s legal proceedings. In that earlier case, jurors determined that Meta violated consumer protection laws by falsely representing safety features for younger users. When combined, the two rulings result in Meta being ordered to pay a total of $942 million in New Mexico, stemming from the state’s enforcement actions led by Attorney General Raúl Torrez.
Under the detailed court-mandated remedial plan, $420 million of the newly awarded funds will directly finance mental health treatment services for children throughout New Mexico. The remaining funds are allocated for public education campaigns, early screening efforts, and community prevention initiatives over the next five years. The court’s decision also imposes strict operational requirements, including enforcing default private settings for accounts of users under 18, limiting daily engagement time, restricting notification pushes, and enhancing screening methods for child sexual abuse material.
Meta Ordered to Pay $567 Million in New Mexico for Youth Mental Health Programs
This enforcement action in Mexico is among the largest penalties ever imposed on a major technology firm regarding child safety practices. Attorney General Torrez filed the lawsuit after investigations revealed that Meta’s recommendation algorithms systematically exposed minor accounts to predatory contact and explicit content. While requiring significant product modifications, Judge Biedscheid decided not to impose mandatory identity tracking for users under 13, citing protections under the Children’s Online Privacy Protection Act.
Meta’s corporate representatives announced after the court hearing that the company plans to appeal the ruling to higher courts in the state. In an official statement, Meta asserted that it has made substantial investments in developing age-appropriate features, parental controls, and automated moderation systems for its platforms. Company officials also argued that the court’s ruling misrepresents the architecture of its platforms and overlooks its ongoing efforts to remove harmful content and identify bad actors.
Judge Orders Funds Toward Prevention and Early Detection Programs
This court decision comes amid increasing legal scrutiny of social media platforms across federal and state courts in the United States. Over 40 state attorneys general, along with numerous local school districts, have filed similar lawsuits claiming that platform design choices promote addictive usage patterns among teenagers. The New Mexico ruling sets a significant legal precedent as more cases proceed toward trial in federal courts later this year.
As Meta prepares to appeal the $567 million youth mental health fund obligation, state officials are reviewing how to allocate the proceeds from the trial. They have indicated that priority will be given to improving rural healthcare access, expanding clinical behavioral counseling, and establishing school-based health centers. The structural mandates from Thursday’s ruling are expected to stay in effect for five years, pending the outcome of Meta’s appeal.