Federal courts just got $75,000 more expensive to access
S. 4850 — Diversity Jurisdiction Inflation Adjustment Act · Filed by John Kennedy (R-LA) · 4 cosponsors · Introduced Jun 22, 2026 · Passed chamber
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What it does
This bill adjusts the minimum dollar amount required to file certain civil lawsuits in federal court (called 'diversity jurisdiction') to account for inflation. Currently set at $75,000, the threshold will rise to $150,000 starting January 1, 2030, then automatically adjust every 10 years based on the Consumer Price Index. The bill also allows federal judges to penalize plaintiffs who recover less than the new threshold by denying them court costs or imposing costs against them.
Why we flagged it
The bill's functional effect is to raise the financial barrier for federal court access and impose penalties on unsuccessful plaintiffs. While framed as a technical inflation adjustment, the doubling of the threshold and automatic indexing mechanism systematically restrict citizen access to federal courts.
What the text implies
- Doubling the threshold from $75,000 to $150,000 (not merely adjusting for inflation since 1996) creates a structural shift in federal court access that disproportionately affects smaller claims and lower-income litigants.
- The cost-shifting provision (28 USC § 1332) penalizes plaintiffs who recover less than the threshold, creating a chilling effect on marginal claims even when the underlying dispute has merit.
The full analysis lists 4 implications of this text.
Who stands to gain
defendants in civil disputes (reduced federal court exposure); large corporations (higher threshold favors defendants in larger disputes); insurance companies (reduced federal litigation risk)