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Three female mental health workers were killed by a former patient at the California Veterans Home.
Authorities say the gunman had been expelled from the program a day earlier for refusing to comply with his treatment plan.
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The money settles the four lawsuits against CalVet filed by the three women's families: $30 million to the estate of Jennifer Gonzales Shushereba, $14 million to the estate of Jennifer Golick, and $7 million to the estate of Christine Loeber.
The settlement was part of a state budget document that was released on Monday and approved by the state legislature.
"Our hearts remain with the victims and their families," said CalVet Deputy Secretary, Communications Lindsey Sin in a statement. "We recognize that their loss is ongoing and that the pain of losing these women will never truly go away, but only hope they are now able to put a piece of this tragedy behind them."
VIDEO: Yountville shooter reportedly struggled within PTSD treatment program, was referred elsewhere