The Fifth Amendment's Takings Clause says government can only seize private property for public use, even when paying just compensation. Courts originally defined public use narrowly—roads, schools, bridges that everyone could access.
But the Supreme Court expanded it dramatically in Kelo v. City of New London (2005), ruling 5-4 that economic development counts as public use. New London, Connecticut seized Susette Kelo's house to transfer the land to private developers who promised jobs and tax revenue for a Pfizer research facility.
The development never happened—Pfizer abandoned the project, leaving empty lots where homes once stood. After Kelo, more than 40 states passed laws restricting eminent domain to prevent governments from seizing property just to boost tax revenue or help private corporations.