Diversity Jurisdiction Inflation Adjustment Act
- Bill Number
- S. 4850
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Law
- Status
- Introduced
- Latest Action
- 2026-06-22: Read twice and referred to the Committee on the Judiciary.
- Last Updated
- 2026-06-25T14:38:02Z
AI-Generated Summary
Purpose This legislation amends federal law to increase and periodically adjust the monetary threshold required for diversity jurisdiction in U.S. district courts, accounting for inflation.
Key Provisions
- The bill raises the amount-in-controversy requirement from $75,000 to $150,000 (exclusive of interest and costs).
- Beginning January 1, 2030, and every tenth year thereafter, the threshold is adjusted based on changes in the Consumer Price Index for All Urban Consumers.
- Adjustments are rounded to the nearest $25,000 and published in the Federal Register by the Director of the Administrative Office of the United States Courts.
- If a plaintiff ultimately recovers less than the required amount, the court may deny costs to the plaintiff or impose costs on the plaintiff.
Significant Changes to Existing Law
- Replaces the fixed $75,000 threshold in 28 U.S.C. § 1332(a) with a reference to an inflation-adjusted amount in a new subsection (b).
- Introduces an automatic, decennial inflation-adjustment mechanism that was not previously part of the statute.
- Updates the cost-shifting provision to align with the new threshold.
Potential Impacts
- Federal district courts may see fewer diversity cases involving claims between $75,000 and the new threshold, shifting some matters to state courts.
- Litigants and attorneys may face changed strategic decisions about where to file suits involving citizens of different states.
- The Administrative Office of the United States Courts will incur recurring administrative duties to calculate and publish adjustments.
Main Stakeholders Affected
- Parties involved in interstate civil disputes (plaintiffs and defendants).
- Federal and state court systems.
- Attorneys practicing in federal courts.
- The Administrative Office of the United States Courts.
Notable Legal, Constitutional, or Political Implications
- Diversity jurisdiction is rooted in Article III of the Constitution; raising the threshold affects access to federal forums without altering the underlying constitutional basis.
- The measure is bipartisan, sponsored by Senators from both parties.
- No direct effects on international relations are addressed in the bill.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Coons, Christopher A. [D-DE], Sen. Cruz, Ted [R-TX], Sen. Whitehouse, Sheldon [D-RI]
Recent Actions
- 2026-06-22: Read twice and referred to the Committee on the Judiciary.
- 2026-06-22: Introduced in Senate
Bill Versions
- Diversity Jurisdiction Inflation Adjustment Act — issued 2026-06-22 — PDF (3 pages)