SANTA FE, Mexico / RankWire.AI / – Meta Platforms Inc. has been ordered by a judge in New Mexico to pay $567 million to support youth behavioral health treatment and prevention initiatives. The ruling, handed down after a three-week bench trial in Santa Fe, was issued by First Judicial District Court Judge Bryan Biedscheid, who determined that the technology giant created a public nuisance through its main platforms, Facebook and Instagram. The court found that Meta’s engagement-focused design worsened mental health issues among youth and increased exposure to online dangers across the state.
This latest monetary decision follows a separate $375 million jury award given to the company in March 2026, during the initial phase of the state’s legal proceedings. During that earlier trial, jurors concluded that Meta violated New Mexico consumer protection laws by misrepresenting safety features of its products for younger users. When combined, the two rulings result in Meta being liable for a total of $942 million in New Mexico, with the company facing combined enforcement actions led by Attorney General Raúl Torrez.
According to the detailed remedial order issued by the court, $420 million of the newly awarded funds will directly support mental health treatment services for children across New Mexico. The remaining funds are allocated for public education efforts, early screening programs, and community prevention initiatives over the next five years. The ruling also mandates strict operational requirements for Meta, including enforcing default private settings on accounts of users under 18, limiting daily engagement time, restricting notification pushes, and enhancing screening systems for child sexual abuse material.
Meta Required to Pay $567 Million in New Mexico for Youth Mental Health Support
The enforcement action in Mexico is among the largest financial penalties imposed on a major tech firm for child safety issues. Attorney General Torrez initiated the lawsuit after investigations revealed that Meta’s algorithmic recommendation systems systematically exposed minor accounts to predatory contacts and explicit content. While the court ordered significant product adjustments, Judge Biedscheid chose not to require mandatory identity verification for users under 13, citing federal privacy protections under the Children’s Online Privacy Protection Act.
Meta’s corporate representatives confirmed after the court hearing that the company plans to appeal the ruling to higher state courts. In a formal statement, Meta emphasized its extensive investment in developing age-appropriate features, parental supervision tools, and automated moderation systems across its platforms. Company officials argued that the decision misrepresents the architecture of its platforms and overlooks the company’s efforts to remove harmful content and identify malicious actors involved in social networks.
Judge Orders Funds Toward Prevention and Early Detection Programs
This legal decision comes amid increasing pressure on social media companies from federal and state courts in the United States. Over 40 state attorneys general and numerous local school districts have filed similar suits, accusing platform design choices of encouraging addictive behaviors among teenagers. The New Mexico ruling sets a significant legal precedent as other states prepare for federal trial proceedings later this year.
As Meta prepares to appeal the $567 million youth mental health fund obligation, state officials are reviewing how the funds from the trial will be allocated. The authorities have indicated that the distribution will focus on improving healthcare access in rural areas, supporting clinical behavioral counseling, and funding school-based health clinics. The structural measures mandated in Thursday’s order are set to be in effect for five years, pending the outcome of Meta’s formal appeal.