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119-s-4850119th Congress

Diversity Jurisdiction Inflation Adjustment Act

Sponsored By: Senator Kennedy, John [R-LA]

Passed Senate

Summary

This bill would replace the fixed $75,000 threshold with a CPI-adjusted $150,000 minimum for federal diversity jurisdiction. It would also let courts shift costs against plaintiffs who recover less than the inflation-adjusted floor and set a schedule of updates starting January 1, 2030 and every 10 years thereafter.

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  • Plaintiffs and families: Smaller civil claims would be less likely to reach federal court. Plaintiffs who recover under the threshold risk having costs denied or being ordered to pay costs when courts find the recovery below the adjusted floor of $150,000.
  • Defendants and litigants: Defendants may see more cases decided in state court and can ask courts to impose cost penalties on plaintiffs whose final recovery falls short of the federally required amount.
  • Courts and administration: The Administrative Office of the U.S. Courts must compute and publish each adjustment by November 15 of the appropriate year. Adjustments use the Consumer Price Index, round to the nearest $25,000, and use September 2025 as the initial CPI baseline for the 2030 update.

*The bill contains no funding, tax, or grant changes and therefore does not directly alter federal spending or revenue under the provided sources.*

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Higher bar and costs in diversity cases

If enacted, to sue in federal court on a diversity case, your claim would need at least $150,000, not counting interest or costs, and measured for the case as a whole. Starting January 1, 2030, the minimum would adjust for inflation every 10 years using the September CPI, with the first comparison to September 2025. Each new amount would be rounded to the nearest $25,000 and published by November 15 before it takes effect on January 1. If you file in federal court and your final award is below the required minimum, the judge would be able to deny your costs or make you pay costs, unless another federal law says otherwise. This looks only at your final recovery and ignores any setoffs, counterclaims, interest, and costs.

Sponsors & CoSponsors

Sponsor

Kennedy, John [R-LA]

LA • R

Cosponsors

  • Sen. Cruz, Ted [R-TX]

    TX • R

    Sponsored 6/22/2026

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 6/22/2026

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 6/22/2026

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 7/27/2026

Roll Call Votes

No roll call votes available for this bill.

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