Nicholas Sandmann, then a 16-year-old student at Covington Catholic High School, sued several media companies, alleging they defamed him in their reporting of the incident.
The post has since been removed, and Smith's current employer has placed him on leave.
Kentucky took the spotlight with three speakers in the lineup at the second night of the RNC Tuesday night.
The convention will be streamed on WDRB.com.
Nicholas Sandmann confirmed the settlement on Twitter. He had alleged that the cable news network falsely labeled him a racist who instigated a threatening confrontation.
The new ruling, by District Judge William O. Bertelsman, is based on an amended complaint filed by Sandmann's legal team.
The "anti-doxing" bill proposes making it a crime to identify a minor online with the intent to intimidate them.
“A Washington Post article first posted online on Jan. 19 reported on a Jan. 18 incident at the Lincoln Memorial,” the note began.
Attorneys representing the Kentucky high school student involved in a confrontation that went viral on social media last month announced Tuesday that they were suing The Washington Post for $250 million in compensatory and punitive damages.