Sponsor
Laurel Lee
Representative · R-FL
Representative · R-FL
The bill reduces federal caseloads and spending by keeping lower-value diversity suits in state courts, improving federal efficiency, but it limits access to federal forums and may increase costs and inconsistent outcomes for some plaintiffs—especially out-of-state businesses and those with claims under $500,000.
Taxpayers and businesses with high-value disputes: The bill keeps lower-value (under $500,000) diversity cases in state courts, reducing the federal caseload so federal judges can resolve higher-value or more complex cases faster.
Taxpayers: By shifting many lower-value suits out of federal court, the bill lowers federal judicial spending per case and could save taxpayer dollars.
Small-business-owners and interstate litigants: Concentrating higher-stakes litigation in federal courts may encourage clearer forum choice and greater predictability for businesses and plaintiffs in complex, high-value disputes.
Plaintiffs with claims under $500,000 (including small-business-owners): The bill restricts their access to federal courts, forcing many disputes into state courts that may be less neutral for out-of-state parties.
Taxpayers and small-business-owners: Because state-court dockets, procedures, and timelines vary, shifting cases may increase litigation costs, complexity, and delays for some parties.
Local governments and interstate commercial litigants: The bill reduces federal oversight and uniformity in interpreting interstate commercial law by moving many diversity cases to state courts, risking inconsistent outcomes across states.
Based on analysis of 2 sections of legislative text.
Raises the federal diversity-jurisdiction amount in controversy from $75,000 to $500,000 for new civil cases.
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
Raises the minimum amount in controversy required for federal diversity jurisdiction from $75,000 to $500,000 for civil cases filed after the law takes effect. The change narrows which private civil disputes between parties from different states can be brought in federal district court by excluding many lower‑value cases. The amendment applies only to the jurisdictional amount in 28 U.S.C. § 1332(a) and takes effect for civil actions commenced on or after the date of enactment.