Glossary

Eminent domain

The government's power to take private property for public use after paying the owner just compensation.

Also called: condemnation, compulsory purchase

Eminent domain is the power of government to take private property for a public purpose, even if the owner objects, in exchange for just compensation. Federal, state and local governments hold the power and may delegate it to utilities, railroads and other private entities. The legal process is often called condemnation.

The Fifth Amendment's Takings Clause limits the power in two ways: the property must be taken for "public use," and the owner must be paid. Compensation is generally the fair market value of the property, which owners sometimes say understates its worth to them. Traditional uses include roads, schools, pipelines and military bases.

In Kelo v. City of New London (2005), the Supreme Court held 5-4 that taking homes for a private economic redevelopment plan could count as a public use. The decision drew bipartisan backlash, and many states then passed laws restricting such takings. Defenders say government needs the power to assemble land for projects that benefit the public; critics, including many conservatives and libertarians, see it as a threat to private property and say it is too often used against poorer and politically weaker owners.

Last reviewed November 8, 2026

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Related terms

Takings Clause The Fifth Amendment provision that private property may not be taken for public use without just compensation. Private property The right of individuals and organizations to own, use, exchange and exclude others from assets, a pillar of market economies. Rule of law The principle that everyone, including government, is subject to publicly known laws that are applied equally and fairly. Substantive due process A doctrine holding that the Due Process Clauses protect certain fundamental rights from government interference, not just fair procedures.