It’s Time For Congress To Actively Condemn Eminent Domain Abuses
“While many redevelopment projects are funded through state and local measures, federal grants are still being used to fund eminent domain abuse. Cedar Rapids, Iowa, received a $35 million grant from the Department of Commerce’s Economic Development Administration (EDA) to seize a hotel for a new convention center. At the time, it was the “largest discretionary grant” ever doled out by the EDA. In fact, that same bureaucracy was also responsible for granting $2 million to the redevelopment project that threatened Susette Kelo’s little pink house.
Meanwhile, Washington, D.C. received $28 million from the Department of Housing and Urban Development to buy and seize 18 acres of businesses for a private developer to build condos and a new mall. Over the next seven years, affected business owners challenged the District in a dozen different eminent domain cases. But the city won or settled every dispute. Stopping federal funding for these projects could be a potent incentive for local governments to respect Americans’ property rights.
To that end, Congressman Jim Sensenbrenner (R-WI) has reintroduced the Private Property Rights Protection Act, which was recently passed by the House Judiciary Committee. If the act passes, a state or political subdivision that exercises eminent domain for economic development would be cut off from receiving federal economic grants for two years. The bill still allows cities to address abandoned properties or those that pose an immediate threat to public health and safety. The act would also prohibit the federal government from using eminent domain for economic development. Fighting eminent domain abuse has enjoyed strong bipartisan support: the act originally passed the House 376 – 38, and groups all across the political spectrum have formed broad coalitions. The Private Property Rights Protection Act has been backed by the NAACP, while opposition to eminent domain for private gain has united the Farm Bureau, the Mexican American Legal Defense and Educational Fund, and the National Federation of Independent Business.”
Sibilla, Nick. Forbes 28 June 2013.