President Bush has weighed in on the debate over the use of eminent domain to spur economic development projects. He issued an executive order June 23 that bars federal agencies from seizing property through eminent domain except for public works projects, such as roads. Most eminent domain activity occurs at the state and local levels, but Bert Gall, an attorney with the Institute for Justice, claims Bush’s directive sends a message to Congress, where legislation aimed at curbing eminent domain is pending.
Last November, the House passed a bill, 376-38, to cut federal economic development aid to states and localities for two years if they use eminent domain for development projects. In the Senate, the bill is being considered by the Judiciary Committee, but there has been no substantive action in the chamber. “The federal government doesn’t really use eminent domain for private development, but...this order encourages the Senate to pass the House bill,” says Gall.