Diversity Jurisdiction Inflation Adjustment Act
The source supplies the latest action, but no lifecycle stage.
Latest action (10 Aug 2026): Held at the desk.
What this bill does
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.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Diversity Jurisdiction Inflation Adjustment Act
This bill raises the minimum amount in controversy for federal diversity jurisdiction.
Under current law, federal courts have jurisdiction over civil cases in which the monetary amount in controversy exceeds $75,000 and there is diversity of citizenship among the parties (e.g., the parties are citizens of different states).
This bill raises the minimum amount in controversy from $75,000 to $150,000 and adjusts the amount for inflation every 10 years beginning in 2030.
Timeline
10 Aug 2026
Held at the desk.
Common questions
- What does S. 4850 do?
- 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.
- Has S. 4850 become law?
- The source does not supply a confirmed lifecycle stage for S. 4850. Check the latest action and official source below.
- Who sponsored S. 4850?
- S. 4850 was sponsored by Sen. Kennedy, John [R-LA] (R-LA), with 4 cosponsors.
- What's the latest action on S. 4850?
- Held at the desk. (10 Aug 2026).
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A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.
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