Taylor was shot in her home by police in March.
The city of Louisville, Kentucky has reached a $12 million settlement in a civil suit from the family of Breonna Taylor, a black woman who was killed by police in her home.
Louisville mayor Greg Fischer announced the settlement at a news conference, saying: "I cannot begin to imagine Ms Palmer's pain, and I am deeply, deeply sorry for Breonna's death."
A lawsuit filed in April by Tamika Palmer, Taylor's mother, alleged the police used flawed information when they obtained a “no-knock” warrant to enter their apartment.
The settlement also agrees to a series of police reforms in the city, including a provision where all search warrants must be approved by a senior officer.
A housing credit will also be introduced for officers who move to low-income neighbourhoods they patrol in the city.
Lonita Baker, a lawyer for the Taylor family, said the settlement was just one layer of what the family is looking for and they are still seeking the arrest of the officers involved in her death.
Taylor was shot at least five times in her apartment in March after police entered using a so-called "no-knock" arrest warrant, which does not require them to announce themselves.
"No-knock" warrants are typically used in drugs cases where police are worried evidence may be destroyed before they can enter a premises.
She and her boyfriend, Kenneth Walker, were awoken by the police executing the warrant late at night in March and Walker has said he fired once at the officers thinking it was an intruder in their apartment.
Taylor, a 26-year-old medical emergency technician, was shot several times by police.
No drugs were found in their home.
Her death sparked months of protests in Louisville and calls nationwide for the officers to be criminally charged.
Officer Brett Hankison was sacked in June after it was established he had “wantonly and blindly” fired as many as 10 rounds into the apartment.