Federal Diversity Jurisdiction Modernization Act of 2026

The Federal Diversity Jurisdiction Modernization Act of 2026 raises the minimum dollar amount required for certain civil cases to be heard in federal court from $75,000 to $500,000. This change directly affects individuals and businesses filing lawsuits based on diversity of citizenship, as their cases will now need to involve a larger financial dispute to qualify for federal jurisdiction. Under the new rules, any civil action commenced after the bill becomes law must meet this higher monetary threshold to proceed in federal court rather than state court. The legislation does not alter other aspects of federal court jurisdiction or the rights of parties involved in these disputes.