Diversity Jurisdiction Inflation Adjustment Act

S. 4850, the Diversity Jurisdiction Inflation Adjustment Act, would amend federal law governing when lawsuits between citizens of different states can be filed in federal court based on the amount of money at stake. The bill raises the minimum amount in controversy required for this "diversity jurisdiction" from $75,000 to $150,000, and sets up automatic inflation adjustments every ten years starting January 1, 2030, tied to the Consumer Price Index. The Director of the Administrative Office of the U.S. Courts would calculate and publish each adjustment in the Federal Register.

The change primarily affects litigants and attorneys deciding whether to bring a lawsuit in federal versus state court: cases seeking less than the new $150,000 threshold would generally need to be filed in state court instead of federal court, unless another statute provides otherwise. It also affects federal courts' caseloads by narrowing the range of disputes eligible for this type of federal jurisdiction.

The bill passed the Senate on August 7, 2026 by unanimous consent, without amendment. It now goes to the House of Representatives for consideration; the House would need to pass it (either as-is or with changes requiring further Senate action) before it could go to the President to be signed into law.

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