Private Property Rights Protection Act of 2006

Private Property Rights Protection Act of 2006 - Prohibits any state or political subdivision, if it receives federal economic development funds during the fiscal year, from exercising, or allowing a delegate to exercise, the power of eminent domain: (1) for economic development; or (2) over property of a religious or other nonprofit organization by reason of its nonprofit or tax-exempt status..

Defines "economic development" as taking private property and conveying or leasing it to a private entity for commercial enterprise carried on for profit or to increase tax revenue, the tax base, employment, or general economic health.

Makes a state or political subdivision that violates such prohibition ineligible for any such funds for two fiscal years.

Prohibits the federal government from exercising its power of eminent domain: (1) for economic development; or (2) over property of a religious or other nonprofit organization by reason of its nonprofit or tax-exempt status.

Establishes a private cause of action for any private property owner who suffers injury from a violation of this Act.

Expresses the sense of Congress that: (1) the use of eminent domain for economic development is a threat to agricultural and other property in rural America; and (2) it is U.S. policy to promote the private ownership of property and to protect the legal rights of private property owners.

Expresses the sense of Congress that all precautions should be taken to avoid the unfair or unreasonable taking of property from survivors of Hurricane Katrina for economic development or other private use.