Rep. Laurel Lee Introduces Federal Diversity Jurisdiction Modernization Act to Reduce Court Backlogs and Improve Access to Justice

Washington, D.C. - Congresswoman Laurel Lee (FL-15) today introduced the Federal Diversity Jurisdiction Modernization Act, legislation to modernize federal court jurisdiction by raising the amount-in-controversy threshold for diversity cases from $75,000 to $500,000.

This reform is designed to alleviate growing caseload pressures in federal courts, ensure the timely resolution of cases, and restore the proper balance between federal and state judicial responsibilities.

"Across the country-and especially in Florida-we are seeing federal courts stretched beyond capacity, with litigants waiting years to have their cases resolved," said Rep. Lee. "The Federal Diversity Jurisdiction Modernization Act is a practical, commonsense step to reduce unnecessary burdens on federal courts, return appropriate cases to state and local jurisdictions, and ensure Americans can access justice without costly and prolonged delays."

Under current law, federal courts may hear cases between parties from different states if the amount in controversy exceeds $75,000-a threshold last updated by Congress in 1996. The Federal Diversity Jurisdiction Modernization Act raises that threshold to $500,000, reflecting decades of inflation and the evolving demands on the federal judiciary.

Federal court filings have increased by approximately 30 percent since 1990, while the number of authorized district court judgeships has grown by only 4 percent. As a result, backlogs have surged, with civil cases pending for more than three years increasing by 346 percent-from 18,280 cases in 2004 to 81,617 in 2024.

By raising the threshold, the legislation is projected to reduce the federal diversity caseload by roughly one-third, allowing federal judges to focus on the most complex and significant disputes while enabling state courts to adjudicate matters more appropriately within their purview.

The need for reform is particularly acute in Florida. The United States District Court for the Middle District of Florida-one of the busiest federal courts in the nation-has repeatedly requested between five and seven additional Article III judgeships to manage its caseload. According to the Judicial Conference's March 2025 recommendations, the Middle District of Florida ranks second in the nation for urgent judicial need, behind only the Central District of California.

Rather than relying solely on expanding the number of judgeships, we should also address the structural drivers of congestion. Raising the amount-in-controversy threshold is a targeted solution that will benefit litigants, reduce costs, and improve efficiency across the system."

The Federal Diversity Jurisdiction Modernization Act preserves federal courts' role in adjudicating major interstate disputes while limiting federal overreach into lower-value cases that are more appropriately handled at the state level.