Appeals Court Ruling Opens Door for Billions in Claims From Landlords Over Biden Admin's COVID Eviction Ban

A federal appeals court ruled that landlords can pursue billions in damages from the federal government over the COVID-era eviction moratorium, calling into question the legality of the CDC’s actions during the pandemic.

Key Facts:

The U.S. Court of Appeals for the Federal Circuit voted 7-3 to allow landlords’ lawsuits over the federal eviction ban to proceed.
The CDC issued a nationwide eviction moratorium in September 2020 that lasted until August 2021.
Landlords argue the order violated the Fifth Amendment’s “takings” clause by denying them income and control over their property.
The ruling upholds a prior decision that the federal government may owe compensation for property losses during the moratorium.
Damages from the case could reach into the tens of billions of dollars.

The Rest of The Story:

The lawsuit centers on the CDC’s nationwide order halting residential evictions during the pandemic.

The agency acted in September 2020, following the expiration of a 120-day eviction freeze passed by Congress.

The CDC’s moratorium, aimed at slowing the spread of COVID-19, remained in place until the Supreme Court struck it down in August 2021.

Landlords filed suit in the U.S. Court of Federal Claims, arguing the moratorium amounted to an illegal seizure of private property.

They cited the Fifth Amendment, which bars the government from taking private property without just compensation.

In 2023, a Federal Circuit panel allowed the lawsuits to proceed.

The Biden administration pushed back, but on Friday, the full court rejected its appeal.

The Justice Department warned the decision could “upend over a century of precedent,” while landlords’ attorneys countered that the government simply “wants another bite at the apple.”

The National Association of Realtors welcomed the ruling, calling it “an important win for property rights.”

Oops!

“A U.S. federal appeals court ruled Friday that the United States must face potentially billions of dollars in legal claims over a temporary ban on residential evictions during the COVID pandemic that affected millions of landlords.” 👇🏼 pic.twitter.com/bJhTfU0EsA

— Kalani o Māui (@MauiBoyMacro) June 11, 2025

Commentary:

This decision marks a major step toward restoring the constitutional principle that private property cannot be taken without compensation.

The CDC’s eviction ban, while presented as a public health measure, effectively seized control of millions of rental properties—many owned by mom-and-pop landlords already struggling to pay mortgages and property taxes.

No statute granted the CDC the authority to enforce such a sweeping policy.

It was a bureaucratic overreach masquerading as pandemic management.

Congress, not unelected public health officials, has the constitutional authority to create and fund such programs.

The economic damage from the moratorium was immense.

Landlords were forced to house tenants without income while still covering maintenance, utilities, and taxes.

For many, it wasn’t just a financial inconvenience—it was ruinous.

Yet the government assumed no liability for this burden.

The courts have now confirmed what many believed from the start: this was an unconstitutional taking.

Under the Fifth Amendment, if the government wants to take something from you—even temporarily—it has to pay.

That principle doesn’t disappear in a crisis.

The Biden administration’s position, that these claims should be dismissed outright, reveals a dangerous disregard for property rights.

Bureaucrats can’t be allowed to bypass the Constitution simply because their intentions sound noble.

Landlords who followed the law, paid their dues, and provided essential housing were treated as disposable.

Now, they may finally have a chance to seek justice.

The Bottom Line:

A federal appeals court has ruled that landlords can move forward with lawsuits against the federal government for losses suffered under the COVID eviction moratorium.

If upheld, this ruling could cost taxpayers billions.

The case also reaffirms that constitutional rights, especially property rights, don’t disappear during a crisis.