Sponsors (4)
Raising the federal diversity-jurisdiction threshold to $150,000 reduces federal court caseloads and some federal litigation costs, but it removes the federal forum for many lower-value claims and likely shifts costs and procedural burdens onto individuals and small businesses.
Federal courts, judges, and court staff will face fewer low-value civil diversity cases because the jurisdictional amount rises to $150,000, reducing docket pressure and allowing more focus on higher-value or federal-question matters.
Taxpayers may pay less in federal litigation-related expenses because fewer diversity cases will proceed in federal court under the higher $150,000 threshold.
People with disputes under $150,000 — including many middle-class families and small businesses — will generally lose access to federal courts for diversity claims and will have to pursue cases in state court instead.
Individuals and small businesses may face higher litigation costs or less favorable procedures when forced into state court, because procedural differences and added burdens can increase time and expense to resolve claims.
Based on analysis of 2 sections of legislative text.
Increases the federal diversity-jurisdiction amount-in-controversy from $75,000 to $150,000 and requires CPI-based adjustments beginning in 2030.
Official title: Amend title 28, United States Code, to adjust thresholds relating to jurisdiction for inflation.
Introduced June 22, 2026 by John Neely Kennedy · Last progress June 22, 2026
Replaces the fixed $75,000 diversity-jurisdiction floor with a statutory minimum of $150,000 (excluding interest and costs) and requires periodic inflation adjustments tied to the Consumer Price Index. The bill directs the Administrative Office of the U.S. Courts to compute and publish adjustments, starting with a first automatic CPI-based change effective January 1, 2030 and then every ten years thereafter, rounding results to the nearest $25,000.