Fiona McFarland pushes to raise payout caps on lawsuits against cities and counties

A bill pitched by Sarasota Rep. Fiona McFarland that increases the payout cap on lawsuits against state and local governments has advanced through the committee stage, but it’s still in search of a Senate sponsor despite favorable outlook in the House.

The House Judiciary Committee advanced McFarland’s legislation (HB 145) that would significantly raise Florida’s sovereign immunity caps placed on lawsuits against state and local governments, reviving an effort to update how much people can recover when they sue. 

The measure would increase the current limits of $200,000 per person and $300,000 per incident to $500,000 and $1 million beginning in 2026. The caps would rise again in 2031 to $600,000 per person and $1.2 million per incident.

The bill would also allow cities, counties and other public agencies to settle claims above those limits without needing a separate act of the Legislature. It shortens the time to file notices of claim against government entities, reduces the statute of limitations for negligence cases to two years, and bars insurers from requiring a claims bill before paying benefits.

Supporters say the updates modernize payout limits that have not changed over a decade, and streamline a process that forces victims to seek additional compensation through a claims bill.

“I’ll remind you that approximately one-fourth of claims bills that are filed every year pass, and again these caps were last updated in 2010.” McFarland said during Thursday’s committee meeting. 

However local governments and school districts have previously warned that higher caps could increase insurance costs and pressure local budgets, especially since it comes at a time when state legislators aim to cut property taxes.

The committee reported favorably on the measure with a 12 to 2 vote. HB 145 next heads to the House floor for debate, but a Senate companion has not yet been filed ahead of the Jan. 9 deadline.

The 2025 Session version of SB 145 passed in the House on a 103-11 vote in April, but it stalled out in the Senate where its upper-chamber companion, sponsored by St. Petersburg Republican Sen. Nick DiCeglie, died without a hearing. DiCeglie previously told Florida Politics he isn’t refiling the bill for the 2026 Session and doesn’t know if another Senator will.

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Jesse Scheckner of Florida Politics contributed to this report.