Cincinnati, Ohio, holds a $1.9bn infrastructure fund from the sale of a railway line, yet the city cannot use it to address its growing housing crisis due to strict restrictions imposed by Republican state lawmakers. The fund generates $56m to $58m annually, but it can only be spent on repairing or replacing existing infrastructure like streets, sidewalks, and parks, not on new housing.
Housing Crisis Deepens as Population Grows
Cincinnati's population is growing for the first time in a generation, according to Mayor Aftab Pureval. However, the city's housing stock is declining. “It’s the worst-case scenario for us,” Pureval said. “Because we’re such an old city, we’re losing housing stock and not building housing fast enough, so we actually have less housing.” Cincinnati had the highest percentage increase in average rental costs in the US in 2025, surpassing even New York, Miami, and San Francisco.
Railroad Sale Creates Fund, But With Strings Attached
The fund originated from the sale of the Cincinnati Southern Railway to Norfolk Southern in 2024 for $1.9bn. The decision was controversial, passing a referendum with 52% support after Norfolk Southern spent over $4m on marketing. While the sale had nearly unanimous support in the state legislature (final state senate vote 30-1), Republicans insisted on limiting how the money could be used. State Senator Bill Seitz said, “Many people had a dim view of whether the current city council would responsibly spend the money, so we limited it to traditional infrastructure improvement.”
Political Mistrust Across Ohio and Nationwide
The restrictions reflect broader tensions between red states and blue cities. In Ohio, conflicts have emerged over guns, minimum wage, plastic bags, and vapes. Seitz cited “fiscal mismanagement that plagues Chicago and California and New York” as a reason for mistrust. State Senator Louis Blessing noted, “There’s a kind of an ethos that they need to be saved from themselves. They’ll say that they’re overspending. They’ll say that they’re riddled with crime.”
Impact on Cincinnati Residents
The trust fund represents about $5,000 for every one of Cincinnati’s 315,000 residents. The annual revenue offsets about $388 in taxes per household. However, the inability to use the fund for housing leaves the city struggling with a crisis that Pureval calls “the worst-case scenario.” As an antitrust attorney turned mayor, Pureval understands the political dynamics but remains frustrated. “That was a really important experience for me,” he said of interning for Governor Mike DeWine. “It solidified my progressive values, while also showing me that the folks on the other side of the aisle were, to a large degree, just trying to do what they thought was right.”
