President Trump has repeatedly threatened to invoke the Insurrection Act amid protests against aggressive ICE enforcement operations in Democratic-led cities, including Los Angeles in mid-2025, Portland and Chicago later that year, and especially Minnesota in January 2026 following fatal shootings by federal agents that sparked clashes. A late-2025 Supreme Court ruling curtailed alternative authorities for federalizing National Guard units, increasing discussion of the Act as a broader option for domestic deployments tied to immigration and civil disorder. No invocation has occurred, reflecting institutional caution, legal challenges from states, and the absence of conditions historically triggering its use. Traders weigh these factors against midterm election timing and potential escalation in enforcement disputes through year-end.