Ohio judge blocks transfer of unclaimed-funds money for stadium grants, including planned Browns funding

Preliminary injunction pauses new state mechanism for financing sports and cultural facilities

A Franklin County Court of Common Pleas magistrate on Monday, March 9, 2026, granted a preliminary injunction that halts Ohio from transferring money held in the state’s unclaimed-funds trust account into a recently created grant fund designed to support sports and cultural facilities.

The ruling blocks implementation of amendments to Ohio’s Unclaimed Funds Law that were enacted in the state’s biennial operating budget for fiscal years 2026 and 2027. Under that budget framework, state officials planned to shift unclaimed funds deemed abandoned and escheated to the state into a new Ohio Cultural and Sports Facility Performance Grant Fund, beginning in 2026.

What the state planned to do with unclaimed funds

The budget set aside $1.7 billion for the new grant fund and designated $600 million as an initial award intended to support construction tied to the Cleveland Browns’ proposed stadium project in Brook Park. The legal challenge has focused on whether the state can redirect unclaimed funds—property still associated with identifiable owners—into a program that would finance stadium and facility projects.

Court filings and prior proceedings in the case have described the unclaimed-funds account as holding a wide range of dormant property, including old bank accounts, uncashed checks and other assets that are transferred to the state for safekeeping until claimed by owners or heirs.

Core constitutional questions before the court

In granting preliminary relief, the magistrate found the plaintiffs showed a substantial likelihood of success on claims that the amended law violates provisions of the Ohio Constitution, including the Takings Clause and due-process protections. A preliminary injunction is a temporary remedy that keeps the disputed policy from being carried out while the case proceeds and the court reaches a final decision.

The order pauses the state’s ability to move money out of the unclaimed-funds trust structure for non-custodial purposes while the lawsuit continues.

What changes immediately, and what comes next

The injunction prevents the transfer of the contested unclaimed-funds money into the grant program during the pendency of the litigation, freezing a key funding pathway that state leaders had built into the 2026–2027 budget cycle for stadium and facility projects.

The case is expected to continue through additional proceedings in Franklin County. As with other preliminary-injunction rulings, the state may seek review and further court action, and the legal dispute will ultimately turn on whether the budget’s unclaimed-funds mechanism can be reconciled with constitutional limits on the use of private property held by the state in custody.

• Date of injunction: March 9, 2026
• Funds at issue: up to roughly $1.7 billion in unclaimed funds designated for the grant program
• Notable planned allocation: $600 million tied to the Browns’ proposed Brook Park stadium project