Diversity Jurisdiction Inflation Adjustment Act

John Kennedy

Republican · LA · Senator

Source: Congress.gov · FEC

• Christopher A. Coons (D-DE)Original· 2026-06-22
• Sheldon Whitehouse (D-RI)Original· 2026-06-22
• Ted Cruz (R-TX)Original· 2026-06-22

Passed Senate without amendment by Unanimous Consent.

2026-08-07

Source: Congress.gov

The federal court system uses dollar amounts to decide which cases they can hear, and these thresholds haven't been updated in decades despite inflation making money worth less over time. This bill would increase those dollar thresholds to reflect current economic conditions, meaning more cases would qualify for federal court jurisdiction. The change would affect businesses, individuals, and the courts by adjusting which disputes can be heard in federal versus state courts based on the amount of money involved.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4850 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4850 To amend title 28, United States Code, to adjust thresholds relating to jurisdiction for inflation. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES June 22, 2026 Mr. Kennedy (for himself, Mr. Coons, Mr. Cruz, and Mr. Whitehouse) introduced the following bill; which was read twice and referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend title 28, United States Code, to adjust thresholds relating to jurisdiction for inflation. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Diversity Jurisdiction Inflation Adjustment Act''. SEC. 2. INFLATION ADJUSTMENTS. Section 1332 of title 28, United States Code, is amended-- (1) in subsection (a), by striking ``of $75,000'' and inserting ``described in subsection (b)''; and (2) by striking subsection (b) and inserting the following: ``(b)(1) The matter in controversy described in this subsection is not less than $150,000, as adjusted under paragraph (2), exclusive of interest and costs. ``(2)(A) In this paragraph-- ``(i) the term `appropriate year' means the calendar year preceding the calendar year in which the adjustment under paragraph (1) is to take effect; and ``(ii) the term `Consumer Price Index' means the Consumer Price Index for All Urban Consumers published by the Department of Labor. ``(B) Effective on January 1, 2030, and January 1 of each tenth year thereafter, the dollar amount then in effect as the minimum amount in controversy applicable under paragraph (1) shall be adjusted by an amount, rounded to the nearest $25,000 (or, if midway between multiples, to the next higher multiple of $25,000) which reflects the change in the Consumer Price Index for the month of September of the appropriate year, over the Consumer Price Index for-- ``(i) in the case of the initial adjustment, the month of September 2025; and ``(ii) in the case of each subsequent adjustment, September of the year preceding the last adjustment. ``(C) The Director of the Administrative Office of the United States Courts shall determine the amount of each adjustment under paragraph (1) and, not later than November 15 of the appropriate year, shall submit for publication in the Federal Register the amount (and the percentage change in the Consumer Price Index that is the basis for the amount) and the new minimum amount in controversy to take effect on January 1 of the succeeding calendar year. ``(3) Except when express provision therefor is otherwise made in a statute of the United States, where the plaintiff who files the case originally in the Federal courts is finally adjudged to be entitled to recover less than the sum or value required under paragraph (1) without regard to any setoff or counterclaim to which the defendant may be adjudged to be entitled, and exclusive of interest and costs, the district court may deny costs to the plaintiff and, in addition, may impose costs on the plaintiff.''. <all>

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