Tennessee Is Getting $751.9 Million From Meta. Where That Money Goes Is Now Up to the Legislature.

The state's share of a $17.1 billion national settlement over teen social media harm will flow into a newly created Tennessee's Children's Digital Protection Fund. How nearly three quarters of a billion dollars gets spent, and how much reaches Memphis and Shelby County kids, is a decision that has not been made.

MEMPHIS, Tenn. - Tennessee will receive $751,922,691.13 as its share of a landmark national settlement with Meta Platforms, the parent company of Facebook and Instagram, over allegations that the company designed its platforms to addict children and misled the public about the harm, Tennessee Attorney General Jonathan Skrmetti announced Wednesday.

The figure is Tennessee's cut of a settlement that the attorney general's office valued at up to $17.1 billion nationally, which it described as the largest state consumer protection settlement in history. The deal, filed in federal court in the Northern District of California, resolves claims brought by a coalition of 47 states along with the District of Columbia, Puerto Rico, American Samoa, and the Northern Mariana Islands. Meta denies the allegations and, in the filing, states that the agreement is for settlement purposes only and is not an admission of liability or wrongdoing.

Tennessee's share is designated for a newly created state account, Tennessee's Children's Digital Protection Fund, according to the attorney general's office. The office said the fund is intended to support the mental health and safety of Tennessee children. Skrmetti, whose office said it helped lead the multistate investigation and the negotiations, called the outcome a generational win for the state and its kids.

Beyond the money, the settlement requires Meta to change how its platforms work for young users. The publicly described terms include a combined two-hour daily limit across Facebook and Instagram for young users, required breaks after set intervals of use, a nighttime block from midnight to 6 a.m., limits on push notifications during school hours, stronger age verification, expanded parental controls, and the removal of certain features for teens. The attorney general's office said the daily limits would remain in place for five years, and the agreement provides for an independent auditor to oversee compliance. The settlement requires approval by a judge before it takes effect.

The national case cut short a jury trial in Oakland that carried significant risk for the company, and it leaves thousands of related lawsuits against social media companies still pending, including suits brought by individuals, school districts, and local governments.

For Tennessee, the central open question is not the size of the check but what happens to it. A $751.9 million fund is one of the largest single infusions of dedicated money for children's mental health and online safety the state has seen, and how it is spent will be decided after the money arrives, not by the settlement itself.

Why It Matters for Memphis

Memphis and Shelby County have among the largest populations of children in the state, and the harms this settlement is meant to address, teen mental health, online safety, do not fall evenly across Tennessee. A statewide fund of this size raises an immediate local question: how much of the $751.9 million reaches children in Shelby County, and through what channels, schools, community mental health providers, the county health department, or state programs administered from Nashville. A settlement negotiated for the harm done to kids is only as good as the share that reaches the places where the most kids live.

The Transparency Gap

Who holds the authority here. The attorney general negotiated and announced the settlement, but the attorney general does not control how the money is spent. Once the funds arrive in Tennessee's Children's Digital Protection Fund, appropriation decisions rest with the General Assembly and the governor. The public should be clear on that division: one office won the money, a different set of officials will decide where it goes.

What has not been disclosed. The state has not published the governing rules for the fund, a spending plan, a timeline, or any geographic allocation. It is not yet public whether the money is legally restricted to children's mental health and safety uses or whether it can be redirected, nor how much, if any, is earmarked for the counties with the most affected children.

Why the gap matters, and what we will track. Large settlement funds have a documented history of drifting from their stated purpose once they enter a general budget. The 901 Report will track Tennessee's Children's Digital Protection Fund from creation through appropriation, including the enabling language, the annual spending, and any share directed to Shelby County, and will report whether the money meant for children harmed by these platforms actually reaches them. Seven hundred fifty-one million dollars is a receipt worth following to the end.

Your city. Your money. Your receipts.

Tennessee Is Getting $751.9 Million From Meta. Where That Money Goes Is Now Up to the Legislature.

Why It Matters for Memphis

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