Sponsor
Laurel Lee
Representative · R-FL
Representative · R-FL
The bill trades greater federal-court efficiency and modest taxpayer savings by sending lower-value diversity cases to state courts against reduced access to federal forums, potential higher costs and delays for litigants, and less uniform federal oversight of interstate commercial law.
Taxpayers and federal-court users: shifting many lower-value (< $500,000) diversity suits to state courts reduces the federal caseload and can speed resolution of higher-value federal cases.
Taxpayers: moving lower-value cases out of federal courts lowers federal judicial spending per case, which can produce modest budgetary savings.
Small-business owners and out-of-state plaintiffs/defendants: concentrating high-stakes interstate commercial litigation in federal court may create clearer forum choice and more predictable outcomes for complex, high-value disputes.
Plaintiffs with claims under $500,000 (including many small businesses): lose routine access to federal courts and will be forced to litigate in state courts, which may be less neutral for interstate disputes.
Taxpayers, small businesses, and plaintiffs/defendants: litigation costs and delays could increase because state-court dockets, procedures, and resources vary and may not be able to resolve transferred caseload efficiently.
Local governments, businesses, and interstate litigants: moving many diversity cases to state courts may reduce federal oversight and uniformity in interpreting interstate commercial law, increasing legal uncertainty across states.
Based on analysis of 2 sections of legislative text.
Increases the diversity jurisdiction amount-in-controversy threshold from $75,000 to $500,000 for civil actions begun after enactment.
Raises the minimum dollar amount required for federal diversity jurisdiction from $75,000 to $500,000 so fewer civil cases qualify for federal courts based solely on parties being from different states. The change applies only to civil actions filed on or after the law takes effect (enactment date). This narrows access to federal courts for many private civil disputes and shifts more cases to state courts.
Official title: To amend title 28, United States Code, to adjust the amount in controversy requirement for diversity cases, and for other purposes.
Introduced April 22, 2026 by Laurel Lee · Last progress April 22, 2026