Sponsors (5)
Raising the federal diversity jurisdiction threshold to $150,000 reduces federal court caseloads and modestly lowers federal litigation spending but removes the federal forum for many mid-value disputes, shifting costs and procedural burdens onto state courts and the plaintiffs involved.
Federal judges, court staff, and litigants will see fewer low-value diversity cases in federal court because the jurisdictional floor rises to $150,000, easing federal docket pressure and administrative burden.
Taxpayers may pay less in federal litigation-related expenses because fewer cases will proceed in federal court under the higher threshold.
Middle-class families and small business owners with disputes under $150,000 will generally lose access to federal courts for diversity claims and will have to pursue relief in state courts instead.
Plaintiffs (particularly small businesses and middle-class plaintiffs) may face higher litigation costs or different procedural hurdles when forced into state court, potentially making it harder or more expensive to pursue some claims.
Based on analysis of 2 sections of legislative text.
Raises federal diversity jurisdiction floor to $150,000 and indexes it to the CPI with decennial adjustments and rounding to the nearest $25,000.
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 August 7, 2026
Raises the minimum amount-in-controversy required for federal diversity jurisdiction from $75,000 to a statutory floor of $150,000 (excluding interest and costs) and sets a process to adjust that floor for inflation using the Consumer Price Index. The bill requires the Administrative Office of the U.S. Courts to compute and publish inflation adjustments every ten years, with the first adjustment taking effect January 1, 2030. The change preserves the existing sanctioning rule that allows courts to deny or impose costs when a plaintiff recovers less than the jurisdictional amount (now defined by the new, inflation-adjusted floor). The inflation calculation uses September CPI values and rounds new amounts to the nearest $25,000 (midpoint up).