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US President Donald Trump’s administration is nearing a US$400 million settlement with TikTok to resolve an ongoing lawsuit over alleged child-privacy violations, ABC News reported on Friday, citing sources familiar with the matter.
The White House declined to comment, referring questions to the Justice Department, which did not immediately comment. TikTok did not respond to a request for comment.
ABC said the settlement monies would be used to fund Trump’s “beautification” projects in Washington, sources familiar with the discussions told ABC News. Trump has asked for US$10 billion from Congress to fund a wide range of projects in the District of Columbia area.
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ABC reported that White House officials have held talks for weeks about whether they could legally use the money to pay for Trump’s proposed 76-metre (250-foot) triumphal arch near Arlington National Cemetery.
Typically, settlements are used to aid victims. The Justice Department in 2024 sued TikTok and parent company ByteDance for failing to protect children’s privacy on the social media app.
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Is the proposed TikTok sale to US and global investors a done deal?
Is the proposed TikTok sale to US and global investors a done deal?
The US alleges that for years, millions of American children under age 13 have been using TikTok and that the site “has been collecting and retaining children’s personal information”.
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