As she points out in this article, (and in her book "The Supremacists", which I highly recommend), there is no question whatsoever that Congress has this power under the Constitution, although not many people are aware of it. As she says:
Constitutional authority is clear. Article III, Section I, states, "The judicial power of the United States, shall be vested in one Supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish."
Nothing is new or irregular about Congress prescribing or limiting the kinds of cases that federal courts are permitted to hear. A long historical record conclusively proves that Congress has the power to regulate and limit court jurisdiction, that Congress has used this power repeatedly, and the courts have accepted it.
Read the whole article here:
columnists/PhyllisSchlafly/ 2009/11/24/congress_must_stop_ the_trial_in_new_york_city