The departments of Justice, Homeland Security and Health and Human Services are considering the proposal to resolve lawsuits filed on behalf of parents and children who allegedly suffered psychological trauma as a result of family separation, the report said on Thursday.
The payouts could come close to $1 million per impacted family, with a total payout could be over $1 billion, the report added.
The Trump administration enforced a so-called “zero-tolerance” policy on asylum seekers who illegally crossed the US border starting in May 2018, causing immigration agents to separate thousands of children from their parents. The policy started during the administration of former President Barack Obama but was reversed in June 2018.
The American Civil Liberties Union has identified roughly 5,500 children who were separated from their family at the border by the Trump administration using government figures, the report said.
Lawyers for the families involved in the lawsuits told courts that they are in settlement negotiations and hope to finalize an agreement by the end of November, the report added.
The settlement discussions have been the subject of backlash, according to people familiar with the matter, with government lawyers viewing the payouts as excessive for people who broke the law by illegally crossing the border.
Some lawyers involved in the discussions have said the payouts could be greater than those received by some of the families of September 11, 2001 terror attacks victims.