Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

California threatens lawsuit over Trump’s national emergency

Californian attorneys say they’re ready to challenge Trump’s national emergency declaration with a lawsuit.

Trump and border wall Source: Bloomberg

Attorney general Xavier Becerra told US reporters on Sunday that California is “Definitely and imminently” ready to sue the Trump administration in federal court, with other Democrat-controlled states expected to join the effort.

‘We are prepared, we knew something like this might happen. And with our sister state partners, we are ready to go,’ Becerra said.

Congress rejects national emergency

It comes after US president Donald Trump declared a national state of emergency to fund the $5.7 billion-dollar wall on the US-Mexico border. Congress immediately rejected his request for the funds.

Under a 1976 law, Trump’s emergency powers could allow him to redirect money appropriated by Congress to build the wall, but the Democrats have said they will not let that happen.

According to the White House, Trump will have access to an estimated $8 billion, after nearly $1.4 billion was allocated to border fencing under a spending measure approved by Congress. Trump's emergency declaration would give him an extra $6.7 billion for the wall.

Legal issues with Trump's declaration


Becerra said the emergency declaration was legally vulnerable. ‘It's become clear that this is not an emergency, not only because no one believes it is but because Donald Trump himself has said it's not,’ he said.

California and other states are expected to sue the Trump administration to block Trump’s move. Californian governor, Gavin Newsom is on board with Becerra, and both say they’re waiting to learn which federal programs will lose money to determine the impact each state could face.

Three Texas landowners have filed the first lawsuit against Trump's move on Friday, saying it violates the constitution and would infringe on their property rights.

Legal challenges could slow down Trump's efforts to build the wall but would likely end up at the US Supreme Court. Congress has never defined a national emergency in the National Emergencies Act of 1976, which has previously been invoked many times without a single successful legal challenge.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.