How does the Fifth Amendment limit the government's power of eminent domain?

The Fifth Amendment limits the government's power of eminent domain through the "takings clause," which establishes two fundamental requirements for the seizure of private property.12

First, the government may only take private property for public use. While historically interpreted as direct public use, the U.S. Supreme Court’s 2005 ruling in Kelo v. City of New London adopted an expansive interpretation, holding that "public use" encompasses "public purpose," including private development intended to provide a public benefit, such as economic growth.12

Second, the government must provide just compensation to the property owner. This is generally defined by the courts as the fair market value of the property at the time of the taking, accounting for both its existing use and its potential best use. These provisions serve as a vital check on state power, ensuring that individual property rights are balanced against the needs of the broader society.12