Diversity Jurisdiction Inflation Adjustment Act

Sponsor: John Kennedy (Republican-LA)June 22, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Passed Senate without amendment by Unanimous Consent.

Raises the minimum dollar amount for certain federal lawsuits to $150,000 and adds automatic inflation adjustments.

This bill would increase the minimum dollar amount for certain lawsuits to be heard in federal court from $75,000 to $150,000. It would also set up a system to automatically adjust this amount for inflation every ten years, starting in 2030. This means fewer smaller cases would go to federal court, affecting people who want to sue across state lines.

What Would Change

Today, a lawsuit can go to federal court based on "diversity jurisdiction" if the amount in question is at least $75,000 and the parties are from different states. This amount does not change with inflation. After this bill, the minimum amount would immediately jump to $150,000. This amount would then automatically adjust for inflation every ten years, starting on January 1, 2030, making it harder for smaller cases to qualify for federal court.

Key Provisions

Raises the minimum amount for certain federal lawsuits from $75,000 to $150,000.
Adds automatic inflation adjustments to this minimum amount every ten years, starting January 1, 2030.
Requires the Director of the Administrative Office of the United States Courts to calculate and publish these inflation adjustments.
Lets federal courts deny or impose court costs on plaintiffs who recover less than the required minimum amount in these cases.

View on Congress.gov

S 4850 · 119th Congress · June 22, 2026 · AI Summary by gemini-2.5-flash · 8/10

Diversity Jurisdiction Inflation Adjustment Act

What Would Change

Key Provisions

Lobbying Activity