"This bill will address the alarming and overreaching decision delivered by the Supreme Court," said DeFazio. "As a former county commissioner I have always felt that condemnation should be a last resort, used only in extremely limited circumstances and always for a narrowly-defined, legitimate public use."

The bill makes states and political subdivisions ineligible for Federal economic development funds for 2 fiscal years if they exercise "eminent domain" in the name of private economic development. It also prohibits the Federal government from exercising eminent domain for private economic development.

DeFazio continued, "This misguided Supreme Court ruling could have been avoided, had the House approved my property rights protection amendment on the Kelo v. New London case two years ago. I congratulate my Republican colleagues—most of whom voted against my amendment—on their newfound commitment to property rights protection."

In November 2003, DeFazio offered an amendment to HR 2443, the Coast Guard and Maritime Transportation Act of 2003, to prevent the siting of a Coast Guard museum on property taken by eminent domain. The amendment would have blocked the siting of the museum in New London Connecticut, and protected private homes from being seized by the local government. The amendment failed 199-221.