U.S. authorities are approaching a settlement valued near $400 million with TikTok to resolve litigation alleging failures to protect children's personal information on the popular short-video platform, according to people familiar with the matter who spoke to ABC News.
The White House declined to provide comment and directed inquiries to the Justice Department. The Justice Department did not immediately provide a statement, and TikTok did not respond to a request for comment, according to the reporting.
How the settlement money may be used
Sources familiar with discussions told ABC News that the settlement funds under consideration would be applied to what the report described as the president's "beautification" projects in the Washington area. Those projects include proposals for a range of District of Columbia-area initiatives for which the president has sought funding from Congress.
The president has requested $10 billion from Congress to support a variety of projects around the District of Columbia. Among the ideas discussed, White House officials have reportedly been debating for weeks whether settlement proceeds could be legally allocated to a proposal for a 250-foot (76 m) triumphal arch near Arlington National Cemetery.
Legal and procurement norms typically see settlement proceeds directed to victims or to remedial measures tied to the harms alleged in litigation. The reports underscore an active internal discussion within administration circles about permissible uses of any funds stemming from a law-enforcement resolution.
Background of the lawsuit
The Justice Department sued TikTok and its parent company, ByteDance, in 2024, accusing the companies of failing to protect children who use the app. The government alleges that for years millions of American children under age 13 used TikTok and that the service collected and retained their personal information.
U.S. authorities contend that TikTok violated the Children’s Online Privacy Protection Act (COPPA), which requires services directed to children to obtain parental consent before collecting personal data from users under 13. The lawsuit, which the Federal Trade Commission joined, states its objective is to halt what it calls "TikTok’s unlawful massive-scale invasions of children’s privacy."
According to the Justice Department's allegations, TikTok knowingly allowed children to create standard user accounts, enabling them to make and share short-form videos and send messages with adults and other users on the broader platform. The complaint asserts that TikTok collected personal information from these children without securing parental consent.
Corporate response and related developments
Separately, ByteDance in January finalized an agreement to form a majority American-owned joint venture intended to secure U.S. data and to avert a potential U.S. ban on the short-video application. The platform is used by more than 200 million Americans, the reporting notes.
At this point, the reported settlement remains subject to negotiation and legal approvals. Officials have not publicly confirmed the amount, the terms, or any formal agreement. The Justice Department's case and the prospective use of settlement funds highlight overlapping legal, regulatory, and policy questions for technology platforms, privacy enforcement and federal spending decisions.
What remains uncertain
Key questions include whether a settlement will be finalized, the precise legal mechanisms that would permit settlement proceeds to fund projects in the District, and how any resolution would align with standard practices for allocating settlement funds. Officials have not offered public clarifications on these points.
This matter continues to evolve as the underlying litigation proceeds and as administration discussions about possible allocations of any settlement funds remain ongoing.