Diversity Jurisdiction Inflation Adjustment Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill adjusts the minimum amount of money required to file a civil lawsuit in federal court (diversity jurisdiction) to account for inflation. It increases the current threshold of $75,000 to $150,000, adjusted annually based on the Consumer Price Index. The adjustments will begin on January 1, 2030, and will occur every ten years thereafter, ensuring the threshold reflects the rising cost of living.
Key provisions
- Increases the minimum amount in controversy for diversity jurisdiction from $75,000 to $150,000.
- Establishes an annual inflation adjustment to the minimum amount in controversy.
- The adjustment is based on the Consumer Price Index (CPI).
- The first adjustment will take effect on January 1, 2030.
- Subsequent adjustments will occur every ten years.
- The Director of the Administrative Office of the United States Courts will calculate and publish the adjustment amounts.
- Allows district courts to deny costs to plaintiffs who are awarded less than the adjusted minimum amount.
- Provides for a method to calculate the adjustment based on the CPI over specific periods.
Who is affected
- Federal courts
- Plaintiffs filing civil lawsuits
- Defendants in civil lawsuits
- Attorneys
- The legal system
Notable changes
Bill text
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