Does the Takings Clause Require Compensation for Coronavirus Shutdowns?
Under current Supreme Court precedent, the answer is almost always going to be “no.” But some compensation may be morally imperative, even if not legally required.
State and local governments across the country are forcibly shutting down numerous businesses and other institutions in a desperate effort to limit the spread of the coronavirus. A number of people have asked me whether the Takings Clause of the Fifth Amendment requires compensation for such shutdowns. After all, the Clause mandates payment of “just compensation” any time the government takes “private property” for “public use.” And a shutdown obviously imposes severe—sometimes even ruinous—limitations on the owner’s use of their property.
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