# Kentucky bill would create trust fund using social media lawsuit settlements  
**Published:** 2026-03-16T00:34:20.141Z  
**Source:** [Public News Service - Kentucky](https://app.publicnewsservice.org/story/ky-social-media-lawsuit-trust-fund-would-provide-resources-for-kids/02d7f0bb-e113-42d4-89b1-3db77c528d6f)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://feeds.lexingtonky.news/article/kentucky-bill-would-create-trust-fund-using-social-media-lawsuit-settlements

Proposed [legislation](https://apps.legislature.ky.gov/record/26rs/hb686.html) would create a state trust fund for positive youth development programming using future settlement funds from social media company lawsuits, according to reporting from [Public News Service - Kentucky](https://app.publicnewsservice.org/story/ky-social-media-lawsuit-trust-fund-would-provide-resources-for-kids/02d7f0bb-e113-42d4-89b1-3db77c528d6f).

Rep. Kimberly Moser, R-Taylor Mill, is sponsoring House Bill 686 amid growing concerns about youth mental health issues in Kentucky. Moser cited her work with Jamie Seitz, a Northern Kentucky mother who lost her 13-year-old daughter, Audrey, to suicide, as motivation for the legislation. The tragedy underscores a troubling pattern, as [reporting noted](https://www.fox19.com/2026/02/18/kentucky-lawmaker-proposes-social-media-settlement-fund-after-teens-death/) that Audree Heine died by suicide in November 2024 after becoming involved with an extremist online community.

Thousands of lawsuits have been filed against major social media companies like Meta, TikTok, Snapchat, and YouTube, accusing them of designing addictive platforms that can harm children's mental health, including actions by over 40 state attorneys general, hundreds of school districts, and thousands of individual families. [A Kentucky judge ruled in February](https://www.lpm.org/news/2026-02-23/kentucky-tiktok-lawsuit-calling-app-harmful-to-teens-can-move-forward-judge-rules) that the state attorney general's case against TikTok could move forward. [Both TikTok and Snapchat reached settlements in January 2026](https://www.motleyrice.com/social-media-lawsuits/tiktok) before the first bellwether trial, though settlement amounts were not disclosed.

The bill, which now sits with the Kentucky Senate Rules Committee, would direct settlement money toward youth programming. Shannon Moody, chief policy and strategy officer for Kentucky Youth Advocates, said programming funded by the bill could include tutoring, mentoring, and encouraging positive relationships and connections, with "especially a focus on suicide risk and building awareness around that for our young people."

Young people across Kentucky are increasingly concerned about social media's impact on their peers. Aleah Stigall, a Boyle County high school student, created a nonprofit called "Disconnect To Connect - Let's Get Real" to educate young people about developing real-world relationships. Up to 95% of young people aged 13-17 report using a social media platform, with nearly two-thirds of teenagers reporting daily use and one-third using social media "almost constantly."

[Kentucky Youth Advocates has noted](https://kyyouth.org/social-media-lawsuits-mental-health-and-the-role-of-policymakers/) that [Breathitt County Schools](https://www.breathitt.k12.ky.us/) was selected as one of six school districts nationwide for bellwether trials in the federal litigation. The outcome of these trials could determine significant liability and damages for social media companies.

## Sources

- [Public News Service - Kentucky](https://app.publicnewsservice.org/story/ky-social-media-lawsuit-trust-fund-would-provide-resources-for-kids/02d7f0bb-e113-42d4-89b1-3db77c528d6f)
- [HB 686 text on Kentucky Legislature website](https://apps.legislature.ky.gov/record/26rs/hb686.html)
- [Fox19 - Teen's suicide after using Roblox drives Kentucky online protection law](https://www.fox19.com/2026/02/18/kentucky-lawmaker-proposes-social-media-settlement-fund-after-teens-death/)
- [Louisville Public Media - Kentucky TikTok lawsuit can move forward](https://www.lpm.org/news/2026-02-23/kentucky-tiktok-lawsuit-calling-app-harmful-to-teens-can-move-forward-judge-rules)
- [Motley Rice - TikTok and Snapchat settlements in 2026 bellwether trial](https://www.motleyrice.com/social-media-lawsuits/tiktok)
- [Kentucky Youth Advocates - Social Media Lawsuits and Mental Health](https://kyyouth.org/social-media-lawsuits-mental-health-and-the-role-of-policymakers/)
- [HHS.gov - Social Media and Youth Mental Health](https://www.hhs.gov/surgeongeneral/reports-and-publications/youth-mental-health/social-media/index.html)

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This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Public News Service - Kentucky, enriched with 3 web searches. The original source is available at https://app.publicnewsservice.org/story/ky-social-media-lawsuit-trust-fund-would-provide-resources-for-kids/02d7f0bb-e113-42d4-89b1-3db77c528d6f.