Prince Harry and Meghan Markle will no longer use the titles "His and Her Royal Highness," Buckingham Palace announced Saturday.
The couple will also not receive public funds for royal duties and will repay about $3 million Sovereign Grant funds they recently used to renovate their residence, Frogmore Cottage.
The new arrangement will take effect this spring, according to a statement from Buckingham Palace.
Earlier this month the couple announced via Instagram that they intended to "step back" from their role as senior members of the British royal family and work to become financially independent.
"Harry, Meghan and Archie will always be much loved members of my family," said a statement from Queen Elizabeth released Saturday alongside Buckingham Palace's description of the new arrangement.
"I recognize the challenges they have experienced as a result of intense scrutiny over the last two years and support their wish for a more independent life," the Queen said.
The transition, like the couple's union, is unprecedented in modern royal history.
Markle, who is biracial with white and African-American family members, was born in the United States and worked as an actress before her marriage to Prince Harry.