U.S. Tort Litigation Costs Reach $655.6 Billion, Impacting Household Budgets
A new study by the U.S. Chamber of Commerce Institute for Legal Reform reveals that tort litigation costs in the United States reached approximately $655.6 billion in 2025. This represents 2.12% of the nation's GDP and translates to a hidden annual cost of over $4,900 per American household through increased insurance premiums, healthcare expenses, and higher prices for goods and services. The report highlights that tort costs have grown at an annual rate of 7.8% since 2019, outpacing both general economic growth and inflation. The study suggests that legislative reforms can mitigate these burdens, citing Florida's 2023 civil justice reforms as a successful example where tort costs declined as a percentage of the state's economy.
Topics: economic impact insurance premiums legal reform tort litigation costs