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S. 4850 · Senate bill · 119th Congress
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.
This Act may be cited as the “Diversity Jurisdiction Inflation Adjustment Act”.
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.”.