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US Eyes $400M TikTok Child Privacy Settlement for DC 'Beautification'
The proposed deal would settle a 2024 child-privacy lawsuit without an admission of wrongdoing and send the money to federal beautification projects.
On Friday, May 8, 2026, ABC News reported that the Trump administration is finalizing a deal with TikTok to resolve long-standing allegations regarding the platform's handling of minor users' data.
The proposed $400 million settlement aims to end a federal lawsuit initiated in 2024, which accused the social media giant of committing "massive-scale invasions" of children's privacy by collecting personal data from millions of users under the age of 13 without obtaining parental consent.
Under the terms currently being finalized, the payment would not include an official admission of wrongdoing by TikTok, though the agreement still requires a formal vote of approval from the company’s board of directors before it can be enacted.
The administration has indicated plans to redirect the settlement funds toward President Trump's "beautification" initiatives in Washington, D.C., potentially funding projects such as a 250-foot triumphal arch near Arlington National Cemetery.
Legal experts have noted that this arrangement represents a significant departure from standard Department of Justice practices, as settlement funds in privacy cases are typically used to compensate victims or directly address the underlying regulatory failures rather than funding unrelated infrastructure or aesthetic projects.