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Raising the financial threshold for federal court lawsuits

This bill significantly increases the minimum dollar amount required to bring a lawsuit between residents of different states to federal court. Most legal disputes involving less than $500,000 will now be handled by state courts instead.
Key points
Increases the minimum claim amount from $75,000 to $500,000.
Limits the types of civil cases that qualify for federal court jurisdiction.
Shifts more legal battles to local state court systems for resolution.
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Status:
Introduced
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Additional Information
Federal Diversity Jurisdiction Modernization Act of 2026
Print number: HR 8449
Sponsor: Rep. Lee, Laurel M. [R-FL-15]
Process start date: 2026-04-22