President Donald Trump, in his second term, has repeatedly threatened to invoke the Insurrection Act amid federal immigration enforcement operations and resulting protests, most recently in January 2026 following an ICE incident and demonstrations in Minnesota. Earlier signals involved potential use in cities like Los Angeles, Chicago, and Portland during 2025. The 1807 law grants the president unilateral authority to deploy active-duty troops or federalize National Guard units domestically to suppress insurrection or enforce federal law, bypassing standard Posse Comitatus restrictions. Congress has advanced reform bills narrowing the criteria and requiring legislative approval, while courts have limited related federalization attempts. No invocation has occurred to date, leaving trader assessments focused on ongoing border policy tensions and any escalation in domestic unrest through mid-2026.