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Is that not tantamount the the start of the second CIVIL WAR and how might that impact the economy and markets? Since speaking broadly most of America’s economic output in in BLUE states what might that do to the GDP? THANK YOU FOR YOUR ATTENTION TO THIS MATTER.
I think Johnson federalized and used the national guard on a state by state basis. I don't think there is a precedence for using the guard across state borders. The discussion below points out how a president, using his/her control over the DC law enforcement and guard along with loop holes the current President has found in the Posse Comitatus Act, to violate the intent of the law. I think it is agreed that this intent was that a President needed a state's consent. But, if a blue state refused federalization and a red state allowed federalization, the current position seems to be that the federalized red state national guard and federal military could be used in a blue state. (I guess as long as SCOTUS approves the declared reason for doing so.)
I respectfully submit that which national guards (or regular army) occupy areas is irrelevant.
As to the economic impact on the only state occupied so far (California), by federalized units of the California national guard, here's what the government of California had to say:
the number of people reporting to work in the private sector in California decreased by 3.1% — a downturn only recently matched by the period when people stayed home from work during the COVID-19 lockdown.
... a ripple effect – the state’s economy is likely to contract later this year due to fallout from global tariffs and immigration raids in Los Angeles and other cities that have rattled key sectors, including construction, hospitality, and agriculture, according to a UCLA Anderson forecast.
Mass arrests, detentions and deportations in California could slash $275 billion from the state’s economy and eliminate $23 billion in annual tax revenue. The loss of immigrant workers, undocumented and those losing lawful status under the Trump administration, would delay projects (including rebuilding Los Angeles after the wildfires), reduce food supply, and drive up costs. Undocumented immigrants contributed $8.5 billion in state and local taxes in 2022 — a number that would rise to $10.3 billion if these taxpayers could apply to work lawfully.
The links embedded in that piece are worth following, for their greater depth, their figures on how other states could be affected, and their multiple additional citations.
P.S. Regarding rebuilding LA after the fires, the NYTimes Magazine has a piece I'm just reading now about the environmental and environmental justice issues in disposing of the waste from the fires. "That is more than the entire city of Philadelphia produces in a year [without] even account[ing] for all the charred vehicles and trees. " Maybe the national guard from those other states could lend a hand?
That report on the dumping of toxic waste in the Calabasas landfill was really something. One way or another we've generated so much poisonous waste that nowhere is really going to be safe as we muddle on.
Reports are that Donnie wants to create a national guard Quick Reaction Force to drop into whatever state/town he wants a photo-op for. I suspect it will be comprised of Guardspeople from red states who have governors happy to do anything to appease Dear Leader -- as the surge of surplus Guardsmen in DC has demonstrated.
Relatedly, this Substack post was interesting -- TL;DR. it turns the 'states rights' mindset against the red states who seem to think only they can invoke that when making policy. I think it's a solid idea, if not also adds to our domestic unrest/strife/chaos.
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The Posse Comitatus Act Explained (updated in June 2025)
As to the economic impact on the only state occupied so far (California), by federalized units of the California national guard, here's what the government of California had to say: https://www.gov.ca.gov/2025/07/31/nearly-all-national-guard-soldiers-in-los-angeles-are-demobilizing-governor-newsom-demands-those-remaining-be-released/
The links embedded in that piece are worth following, for their greater depth, their figures on how other states could be affected, and their multiple additional citations.
Here is the link for the UCLA Anderson report. While it focuses more on tariffs than on labor disruptions, it does note that deportations are playing into construction labor shortages. This in turn means lower construction projections and that "the prospect of the private sector building out of the housing affordability problem over the next three years is nil."
https://newsroom.ucla.edu/releases/ucla-anderson-forecast-u-s-california-economies-slow-amid-persistent-economic-geopolitical-uncertainties
P.S. Regarding rebuilding LA after the fires, the NYTimes Magazine has a piece I'm just reading now about the environmental and environmental justice issues in disposing of the waste from the fires. "That is more than the entire city of Philadelphia produces in a year [without] even account[ing] for all the charred vehicles and trees. " Maybe the national guard from those other states could lend a hand?
https://www.nytimes.com/2025/08/24/magazine/landfill-calabasas-los-angeles-wildfire-ash.html
Relatedly, this Substack post was interesting -- TL;DR. it turns the 'states rights' mindset against the red states who seem to think only they can invoke that when making policy. I think it's a solid idea, if not also adds to our domestic unrest/strife/chaos.
https://cmarmitage.substack.com/p/its-time-for-americans-to-start-talking