S. 4850 – Diversity Jurisdiction Inflation Adjustment Act

AI-Generated Summary

Updated August 8, 2026 at 7:40 AM UTC

The Diversity Jurisdiction Inflation Adjustment Act changes the fixed $75,000 threshold for federal diversity jurisdiction to a $150,000 baseline that is automatically updated for inflation. Adjustments happen every ten years starting in 2030, using the Consumer Price Index to reflect price changes. The courts’ administrative office will calculate and publish the new amount, and the law also lets courts deny or impose costs on plaintiffs who recover less than the required minimum.

Key Provisions

The $75,000 minimum amount in controversy for diversity jurisdiction is removed and replaced with a dollar amount that must be at least $150,000, adjusted for inflation.
The amount will be updated on January 1, 2030 and every ten years after that, using the Consumer Price Index (CPI) for All Urban Consumers. The adjustment is based on the change in the CPI for September of the prior year compared to September 2025 (or the previous adjustment year).
The Director of the Administrative Office of the U.S. Courts must calculate the new amount, publish it in the Federal Register by November 15 of the adjustment year, and the new figure takes effect on the following January 1.
If a plaintiff ultimately recovers less than the required minimum amount (excluding interest and costs), the district court may deny the plaintiff’s costs and may even impose costs on the plaintiff.

Legislative Activity

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6 earlier actions

HouseFloor Latest Action

Held at the desk.

August 10, 2026 • 11:11 AM

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SenateIntro Referral

Introduced in Senate

June 22, 2026

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary.

Judiciary Committee

June 22, 2026

SenateCommittee

Senate Committee on the Judiciary discharged by Unanimous Consent.

Judiciary Committee

August 7, 2026

SenateFloor

Passed Senate without amendment by Unanimous Consent. (consideration: CR S4550-4551; text: CR S4551)

August 7, 2026

SenateFloor

Message on Senate action sent to the House.

August 10, 2026

HouseFloor

Received in the House.

August 10, 2026 • 11:02 AM

HouseFloor

Held at the desk.

August 10, 2026 • 11:11 AM

Floor Debate

1 member

What members said about S. 4850 on the floor

1 Republican

Sen. Bernie MorenoR-OH · Aug 7, 2026

Mr. President, I ask unanimous consent that the Committee on the Judiciary be discharged from further consideration of S. 4850 and the Senate proceed to its immediate consideration. I ask unanimous…

Bill Text

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Engrossed in SenateIssued August 7, 2026

119th CONGRESS

2d Session

S. 4850

AN ACT

To amend title 28, United States Code, to adjust thresholds relating to jurisdiction for inflation.

1.

Short title

This Act may be cited as the Diversity Jurisdiction Inflation Adjustment Act.

2.

Inflation adjustments

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.

.

Passed the Senate August 7, 2026.

Secretary