BART's attorney, Dale Allen, said the settlement on behalf of 5-year-old Tatiana Grant was reached Wednesday after lengthy mediation sessions with U.S. District Court Magistrate Judge Joseph Spero in San Francisco.
The deal closes part of a federal civil rights lawsuit brought on by Grant's family. They had originally asked for $50 million. A settlement has not yet been reached with Grant's mother, Wanda Grant.
The money will be invested on behalf of Tatiana, with payouts starting when the girl reaches her 30th birthday, said Oakland civil rights attorney John Burris, who represents the family.
Oscar Grant's girlfriend, Sophina Mesa, is raising the couple's daughter.
Grant, 22, who was unarmed, was shot and killed by former BART Officer Johannes Mehserle after Mehserle and other officers responded to reports that there was a fight on a BART train. Mehserle, who resigned a week after the incident, is charged with murder and his trial is expected to begin in Los Angeles County Superior Court later this year.
Michael Rains, Mehserle's attorney, said his client is "very grateful that Oscar Grant's daughter is protected by this settlement. It is Mr. Mehserle's feeling and belief that BART should pay something to the daughter because she won't have her father around."
The settlement will be completely paid by BART.
"I think it's a good situation for the child. She will be well taken care of over her life," Burris told the Chronicle. "We can't bring the dad back, but the dad is taking care of her nonetheless."
Bay City News contributed to this report.