Indiana is expected to receive at least $296 million and potentially more than $419 million as part of a multistate settlement with Facebook and Instagram parent company Meta.
Indiana Attorney General Todd Rokita announced the agreement Wednesday as part of litigation alleging Meta knowingly designed features on its social media platforms to encourage addictive use among children and teens while misleading the public about potential harms.
The settlement is subject to approval by a federal judge.
The participating states say Meta will pay up to $17.1 billion nationwide. The agreement involves attorneys general from nearly every state and several U.S. territories.
In addition to the payments, Meta would be required to make significant changes to how Facebook and Instagram operate for young users.
The agreement establishes a combined two-hour daily limit for children using Facebook and Instagram, with mandatory pauses after 15 minutes of continuous use and again after 60 and 90 minutes.
It also restricts access between midnight and 6 a.m. and eliminates push notifications for young users between 8 a.m. and 3 p.m. on weekdays during the school year.
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Other provisions require stronger age verification and parental controls, additional protections against bullying and content involving eating disorders, suicide and self-harm, and limits on features including “beauty filters” and visible "like" counts.
Implementation and effectiveness of the changes would be reviewed by an independent auditor and participating states.
"This settlement is a milestone victory for Hoosier families," Rokita said in a statement. "For years, Meta prioritized engagement and profits over the mental health and well-being of our children."
The agreement stems from a years-long investigation by state attorneys general into how social media platforms affect young users.
A group of states sued Meta in 2023, alleging Facebook and Instagram were intentionally designed with features that encouraged children and teenagers to spend more time on the platforms. Meta has disputed allegations that its platforms intentionally harm young users and has pointed to safety features it has implemented over the years.
The settlement was reached during a federal trial in California involving allegations from multiple states over youth safety and privacy. If approved, the agreement would resolve participating states' claims against Meta.
The agreement also resolves state claims related to Meta's sharing of nonpublic Facebook user information with third parties, including Cambridge Analytica before the 2016 election.
Rokita said Indiana plans to continue working with other states to seek protections from other social media companies and platforms.
How Indiana will use its share of the settlement was not specified in the Attorney General's announcement.