Trump administration nears $400 million TikTok settlement over child privacy violations

The central question is not just what TikTok did with children’s data, but what Washington plans to do with the money if the company pays up. The Trump administration is nearing a $400 million settlement over allegations that TikTok and ByteDance collected personal information from children under 13 without proper notice or parental consent, and the deal could be finalized after a board vote as soon as Friday.

The case began with a federal complaint filed on August 2, 2024, after the Federal Trade Commission said its investigation found TikTok and ByteDance violated a 2019 consent order tied to the Children’s Online Privacy Protection Act. The Justice Department said the alleged violations led millions of children under 13 to use the regular TikTok app, where they were exposed to extensive data collection and adult content. The FTC said TikTok knowingly and repeatedly violated children’s privacy and sought civil penalties and a permanent injunction.

If the settlement is approved, it would not include an admission of wrongdoing, a detail that matters for any claim that the deal is meant to change behavior. The money would also not be framed as compensation for victims. Instead, sources told ABC News the administration intends to direct the funds to President Donald Trump’s Washington, D.C., beautification projects, potentially through the Interior Department, the Commerce Department, or both.

That would make the outcome unusual even by the standards of federal enforcement. Justice Department settlements with private companies often route money to injured parties, compliance measures, or directly related remedies. Here, the proceeds could be folded into a broader political and architectural agenda in the capital, including a proposed 250-foot triumphal arch near Arlington National Cemetery. Recent coverage says the arch concept has already moved through the U.S. Commission of Fine Arts, even as historians and veterans have raised objections and legal challenges have followed.

The broader political context is impossible to miss. Trump has sought $10 billion from Congress for a wider set of D.C.-area projects, and the TikTok settlement would give him a new funding stream tied to a major privacy case. Whether $400 million becomes a deterrent or simply another cost of doing business may depend less on the size of the check than on what follows: a real compliance regime, or a symbolic payout diverted to another White House showcase.

The White House declined to comment and referred questions to the Justice Department, which did not immediately respond. TikTok also did not respond.