A federal judge has rejected a request to block the state of Ohio from using $1.7 billion from its unclaimed property fund to help finance a new Cleveland Browns stadium. The controversial case, which has sparked a statewide debate, remains ongoing in court.

Dispute over the constitutionality of Ohio’s decision

U.S. District Judge Edmund A. Sargus Jr. denied the motion for a temporary injunction that would have prevented state officials from accessing the unclaimed property fund. His ruling allows Ohio to begin transferring the money starting January 1, 2026.

Sargus cited a 2019 U.S. Supreme Court precedent stating that such injunctions are generally unavailable when affected parties have other legal means to seek compensation. In this case, holders of unclaimed funds can request reimbursement until 2036, which the judge ruled negates any claim of irreparable harm.

The class-action lawsuit, filed in October by former Ohio Attorney General Marc Dann and former state representative Jeff Crossman, argues that the state’s plan violates citizens’ constitutional rights. They claim that seizing funds without just compensation or due process breaches both federal and state constitutions.

Plaintiffs also argued that residents were not properly informed that their unclaimed assets could be used for purposes such as the new Browns’ stadium project. We are pleased the case will proceed. We are reviewing our options regarding next steps, said Marc Dann.

While Sargus declined to halt the policy, he emphasized that the case will proceed, leaving open the possibility that the plaintiffs could ultimately prevail. However, he clarified that as a federal judge, he lacks jurisdiction over questions of state constitutional law.

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Unclaimed funds and the Cleveland Browns project

Under Ohio’s state budget approved in June, $1.7 billion from the unclaimed property fund will be transferred into a new investment program. The fund, valued at over $4.8 billion, consists of dormant bank accounts, uncashed checks, insurance policies, and abandoned safe deposit box contents.

Of that, $600 million - one quarter of the projected $2.4 billion total cost - will help finance the Browns’ new domed stadium in Brook Park, a Cleveland suburb. The facility is expected to open in 2029.

The new law also stipulates that beginning in 2036, any unclaimed funds left untouched for more than ten years will automatically be redirected to projects supporting sports and cultural infrastructure across Ohio.

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Criticism and concerns of Ohio residents

Critics argue that the state has failed to properly notify citizens about how to reclaim their money. The Ohio Division of Unclaimed Funds maintains that returning funds to rightful owners remains its primary goal. We want to reach as many owners as possible, division director Amy Schellhammer said.

However, several witnesses described the fund’s website as difficult to navigate. Jan Peters, a German IT specialist who previously sued California in a similar case, compared Ohio’s website to a local dog shelter, citing its lack of transparency and accessibility.

Currently, Ohio has 7.9 million unclaimed accounts, about 35,000 of which may belong to individuals living outside the United States. Each year, the state publishes owner lists in local newspapers and runs awareness campaigns encouraging residents to file claims for any amount above $50.