Declaring a National Emergency Unlocks the President’s Emergency Powers 

President Trump’s Executive Order declaring a crime emergency in the District of Columbia triggers a complex legal and constitutional framework that could impact businesses nationwide. This action raises critical questions about the limits of D.C.’s Home Rule powers, the scope of presidential authority under the National Emergency Act, and the potential activation of sweeping federal powers. As the situation evolves, understanding the implications for government contractors, local enterprises, and national commerce is essential.

D.C.’s Home Rule Powers 

Fifty-two years ago, Congress approved the D.C. Home Rule Act of 1973 (Home Rule), granting the District of Columbia limited self-governance or local rule. Home Rule allows D.C. residents to elect local officials to manage some local affairs. It allows the district to tailor its laws and regulations to the specific needs of the city’s businesses and residents. Businesses then can make decisions based on local rules. Congress has retained oversight over the district’s budget and can review all legislation passed by the district’s council before the legislation becomes law. Alternatively, Congress can legislate directly for D.C.  

In an emergency, the president has the sole power to control the D.C. Metropolitan Police Department and the D.C. National Guard under Section 740 of the Home Rule Act. A president cannot exercise those powers for more than 48 hours without giving notice to Congress. Even if the president provides Congress with notice, the president cannot use that authority for more than 30 days. To extend beyond the 30-day limit, Congress must pass a joint resolution.

Declaring a National Emergency 

At a press conference on Wednesday, August 13, 2025, the president suggested that he may circumvent Congress by declaring a national emergency if the Congress does not extend his control over the district. If the president declares a national emergency under the National Emergency Act (NEA), then he will unlock several emergency powers that can impact business transactions beyond the District of Columbia.  

Economic Powers 

The president can invoke the International Emergency Economic Powers Act (IEEPA), found in Title 50, Chapter 35 of the U. S. Code to stabilize the economy during crisis. The IEEPA allows the president to impose economic sanctions, regulate commerce, and potentially freeze assets during emergencies. The act gives the president the power to prohibit international financial transactions in response to a national emergency arising from outside of the United States.  

Contracting Flexibility 

Under the Federal Acquisition Regulation (FAR) Part 18, the president can bypass normal bidding procedures for contracts related to national defense. If the president declares a national emergency, then he can bypass certain regulations and streamline procurement transactions. For instance, purchasing thresholds increase, agencies may use oral solicitations and waive publication requirements, and limit open competition.  

Communication Regulation 

The Communications Act of 1934 empowers the president to regulate or restrict communication systems. Section 606 of the Act allows the president to suspend or amend regulations, close communication facilities, or authorize government control of stations and their apparatus. This power extends to wire and radio communications and can be used to prioritize or restrict the flow of information during a crisis.  

Resource Allocation 

The president can access and allocate resources from national defense stockpiles to meet military, industrial, and civilian needs under the National Stockpile Act and the Defense Production Act (DPA). The DPA authorizes the president to prioritize contracts and incentivize increased production.  

Natural Disasters 

The Stafford Act allows the military or national guard to respond to natural disasters, public health crises or other similar events without waiving the restrictions of the Posse Comitatus Act.  

Military Deployment 

A national emergency allows the president to deploy the military and federalize the national guard under The Insurrection Act of 1807. When the United States Constitution was adopted, so too was the idea of having a central military force.  

American tradition dictated that the military should not interfere with civilian affairs. These ideas were enshrined in the Posse Comitatus Act of 1878. However, exceptions apply when there is a natural disaster or a rebellion.  

The Stafford Act covers using the military during natural disasters. The Insurrection Act lays out vague guidelines permitting the president to temporarily suspend the Posse Comitatus Act so the military can act as law enforcement, alongside the local police, in domestic situations.  

If the president wants to use the National Guard for domestic law enforcement (e.g., riot control), usually, the president needs the governor’s approval. This falls under Title 32 of the U.S. Code, which keeps control with the governor, even if federally funded. The president can use the military and the states’ national guards to suppress civil disorder, such as an insurrection or rebellion, to enforce a federal court order, or to repel an invasion—even over a state governor’s objections.  

Troops can be deployed under three sections.  

1. Section 251 allows the president to deploy troops if a state’s legislature or governor is unavailable to request federal aid to suppress an insurrection in that state. 
2. Sections 252 and 253 allows the president to deploy troops without a request from the affected state. It allows deployment to enforce the laws or suppress rebellion when unlawful obstructions, combinations, assemblages or rebellion make it impractical to enforce federal law in that state by the ordinary course of judicial proceedings. 
3. Section 253 allows the president to suppress any insurrection, domestic violence, or unlawful combination that hinders the enforcement of the laws and when states are unwilling to protect that right. This section was used to desegregate schools.

The second part of 253 allows the president to deploy troops to suppress insurrection, domestic violence, unlawful combination, or conspiracy in a state that opposes or obstructs the execution of the laws of the United States or impedes the course of justice under those laws. 

Who decides when the conditions for deployment have been met?  

Nothing in the text of the statute defines insurrection, rebellion, domestic violence, or any other prerequisites for setting the key terms for deployment. Without statutory guidance, the Supreme Court decided that this question is for the president alone to decide (Martin v. Mott, 25 U.S. 19 (1827)).  

In a later case (Sterling v. Constatine, 287 U.S. 378 (1932)), the court clarified that courts may review the lawfulness of the military’s actions once deployed. The president is obligated to periodically report to Congress on actions taken and the associated costs related to the emergency declaration. 

Preparing your Business 

This is a complicated and emerging situation that could affect businesses not only located in the Washington, D.C. metro area, but nationwide—government contractors, and others. If President Trump declares a national emergency, please contact the attorneys at Woods Rogers to discuss how it may impact you or your business.