Back to Dashboard
S-4850Senate2026-08-07Law

Diversity Jurisdiction Inflation Adjustment Act

YourVoice.Now Summary

Civil LibertiesYour Money

Cross-state lawsuits would need $150,000 at stake, up from $75,000, to get into federal court — with inflation updates from 2030

Civil Liberties

Federal court access for cross-state lawsuits — minimum claim doubled to $150,000

Federal courts can hear a lawsuit between people from different states, or with foreign citizens, only if enough money is at stake. That bar rises from more than $75,000 to at least $150,000, so smaller cases stay in state court and cannot be moved to federal court.

Federal court access for cross-state lawsuits — minimum tied to inflation starting 2030

Starting January 1, 2030, and every 10 years after, the $150,000 minimum would be adjusted for changes in consumer prices. It is rounded to the nearest $25,000 and published in the Federal Register by November 15 the year before.

Your Money

Chance you pay federal court costs — if you win under $150,000

If you bring a cross-state case in federal court and the court awards you less than the minimum, the judge may refuse your court costs and may charge you costs. That cutoff moves from $75,000 to $150,000.

More about this bill

Lawsuits between people or companies from different states would need more money at stake to be heard in federal court. Today, federal courts can take these cases when more than $75,000 is at stake. The bill would raise that minimum to $150,000. Smaller cases would stay in state court. A party being sued could no longer move such a case from state court to federal court. Starting January 1, 2030, the minimum would be updated every 10 years to follow consumer prices. Each update would be rounded to the nearest $25,000. The federal courts' main office would publish each new amount by November 15 of the year before. If you sue in federal court and win less than the minimum, a judge could deny your court costs. The judge could also make you pay costs. The Senate passed the bill in August 2026.

Congressional Summary

Diversity Jurisdiction Inflation Adjustment Act This bill raises the minimum amount in controversy for federal diversity jurisdiction. Under current law, federal courts have jurisdiction over civil cases in which the monetary amount in controversy exceeds $75,000 and there is diversity of citizenship among the parties (e.g., the parties are citizens of different states). This bill raises the minimum amount in controversy from $75,000 to $150,000 and adjusts the amount for inflation every 10 years beginning in 2030.

Legislative Subjects

Inflation and pricesJurisdiction and venue

Details

Congress
119th
Chamber
Senate
Status
summarized
Action
Passed Senate
Action Date
2026-08-07
Date Added
2026-10-02
Source
Congress.gov →

Like reading a bill in plain English?

We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.

By default, we'll only email you once — when the app launches. Unless you opt in below, you won't receive anything else. We don't share or sell your email.