1 00:00:03,480 --> 00:00:07,560 Speaker 1: Welcome to the Bloomberg Law Podcast. I'm June Grosso. Every 2 00:00:07,640 --> 00:00:10,440 Speaker 1: day we bring you insight and analysis into the most 3 00:00:10,480 --> 00:00:13,399 Speaker 1: important legal news of the day. You can find more 4 00:00:13,480 --> 00:00:18,040 Speaker 1: episodes of the Bloomberg Law Podcast on Apple Podcasts, SoundCloud 5 00:00:18,320 --> 00:00:22,720 Speaker 1: and on Bloomberg dot com slash podcasts. President Trump is 6 00:00:22,720 --> 00:00:25,720 Speaker 1: talking about taking the partial shutdown of the government over 7 00:00:25,760 --> 00:00:28,640 Speaker 1: a border wall to the next level, threatening to declare 8 00:00:28,680 --> 00:00:32,400 Speaker 1: a national emergency to build the wall without Congress's approval. 9 00:00:32,800 --> 00:00:36,120 Speaker 1: He first flirted the idea at a press conference on Friday. 10 00:00:36,280 --> 00:00:39,560 Speaker 1: We can call a national emergency because of the security 11 00:00:39,560 --> 00:00:41,680 Speaker 1: of our country. Absolutely, now we can do it. I 12 00:00:41,720 --> 00:00:44,120 Speaker 1: haven't done it. I may do it. I may do it. 13 00:00:44,520 --> 00:00:47,199 Speaker 1: But we could call a national emergency and build it 14 00:00:47,320 --> 00:00:50,560 Speaker 1: very quickly. And uh, it's another way of doing it. 15 00:00:51,040 --> 00:00:53,519 Speaker 1: The question is not only will he do so, but 16 00:00:53,760 --> 00:00:56,520 Speaker 1: can he do so? Here to answer that is Harold Crant, 17 00:00:56,520 --> 00:00:59,320 Speaker 1: dean of the Chicago Kent College of Law and author 18 00:00:59,360 --> 00:01:04,039 Speaker 1: of the book Residential Powers. So, Harold, does President Trump 19 00:01:04,080 --> 00:01:06,560 Speaker 1: have the power to declare a state of emergency at 20 00:01:06,600 --> 00:01:09,399 Speaker 1: the border and build a wall? The answer is in 21 00:01:09,480 --> 00:01:12,440 Speaker 1: two parts. The probably he has the authority to declare 22 00:01:12,600 --> 00:01:15,400 Speaker 1: an emergency. The question is who can question him about 23 00:01:15,440 --> 00:01:18,880 Speaker 1: that declaration? Um is that the courts, will it be Congress? 24 00:01:19,240 --> 00:01:22,240 Speaker 1: Unclear because obviously many people don't believe that we are 25 00:01:22,319 --> 00:01:25,440 Speaker 1: facing an emergency. But under the National Emergencies Act that 26 00:01:25,560 --> 00:01:28,920 Speaker 1: was enacted in ninety six, he has the authority to 27 00:01:29,000 --> 00:01:31,960 Speaker 1: declare an emergency as long as he does so following 28 00:01:32,000 --> 00:01:35,080 Speaker 1: the protocols set out in that statute. But the second 29 00:01:35,080 --> 00:01:38,160 Speaker 1: part is this is gonna take money, and how will 30 00:01:38,200 --> 00:01:40,680 Speaker 1: he be able to raise money for the five point 31 00:01:40,760 --> 00:01:43,840 Speaker 1: seven billion or whatever it is? Um, Their Congress will 32 00:01:43,880 --> 00:01:47,720 Speaker 1: have a say as well the courts, and his plan 33 00:01:47,800 --> 00:01:51,200 Speaker 1: maybe get a little more difficult. So this is definitely 34 00:01:51,320 --> 00:01:54,400 Speaker 1: going to the courts. Then, well, first of all, this 35 00:01:54,440 --> 00:01:57,160 Speaker 1: may be a barbering employee, and many people think it's 36 00:01:57,200 --> 00:01:59,920 Speaker 1: a barbering employee, but people just don't know, I mean, 37 00:02:00,080 --> 00:02:02,160 Speaker 1: will he Is he trying to get the Democrats to 38 00:02:02,240 --> 00:02:04,960 Speaker 1: some kind of compromise over the shutdown of the government 39 00:02:05,440 --> 00:02:08,519 Speaker 1: or is this an alternative and maybe he set this 40 00:02:08,560 --> 00:02:10,519 Speaker 1: out as a twild balloon to see if people will 41 00:02:10,520 --> 00:02:15,120 Speaker 1: accept it. We've had about thirty emergencies declared under the 42 00:02:15,200 --> 00:02:19,760 Speaker 1: nineteen seventy six Acts, starting with the Iran hostage situation 43 00:02:19,840 --> 00:02:23,760 Speaker 1: of course nine eleven, as well as others. And there 44 00:02:23,760 --> 00:02:29,000 Speaker 1: are very few constraints in this legislation that define what 45 00:02:29,160 --> 00:02:33,440 Speaker 1: is a permissible emergency. Um. Obviously, people can say that 46 00:02:33,560 --> 00:02:36,440 Speaker 1: we haven't seen that many more arrests or unrest at 47 00:02:36,480 --> 00:02:38,720 Speaker 1: the border. Most people are coming to the border to 48 00:02:38,960 --> 00:02:42,440 Speaker 1: seek asylum. They're not having any kind of threat um. 49 00:02:42,440 --> 00:02:45,160 Speaker 1: But that would be up in the judgment of the president, 50 00:02:45,400 --> 00:02:49,000 Speaker 1: and we don't know if judges will review that determination. 51 00:02:49,520 --> 00:02:52,320 Speaker 1: The remedy I think it's another big question. I mean 52 00:02:52,320 --> 00:02:55,880 Speaker 1: the remedy of how does a wall help the crisis 53 00:02:55,880 --> 00:02:59,280 Speaker 1: with respect to asylum seekers. That's a little unclear. And 54 00:03:00,000 --> 00:03:02,880 Speaker 1: can the wall be built within two years anyway, And 55 00:03:02,960 --> 00:03:05,680 Speaker 1: usually if we don't see emergencies for something that's going 56 00:03:05,720 --> 00:03:08,040 Speaker 1: to happen two years from now. So if the courts 57 00:03:08,160 --> 00:03:11,760 Speaker 1: would take this to consider whether or not this is 58 00:03:11,760 --> 00:03:14,960 Speaker 1: an appropriate use of the national emergency power, there's a 59 00:03:14,960 --> 00:03:17,040 Speaker 1: lot to look at um if they review it on 60 00:03:17,080 --> 00:03:21,079 Speaker 1: the merits. President Truman tried to nationalize the steel mills 61 00:03:21,320 --> 00:03:24,440 Speaker 1: during wartime. He was blocked by the Supreme Court. The 62 00:03:24,600 --> 00:03:28,120 Speaker 1: Roberts Court has seemingly straight a little bit from that 63 00:03:28,200 --> 00:03:32,079 Speaker 1: case in the decision on the Muslim band, which bolsters 64 00:03:32,200 --> 00:03:36,760 Speaker 1: the president's control over the nation's borders, is this court 65 00:03:37,000 --> 00:03:41,080 Speaker 1: more likely to stand by Trump on this? It's such 66 00:03:41,120 --> 00:03:43,360 Speaker 1: a hard call. I mean, the Youngstown Steel case that 67 00:03:43,400 --> 00:03:46,440 Speaker 1: you mentioned is, you know, the best known sort of 68 00:03:46,720 --> 00:03:49,920 Speaker 1: president Um. It wasn't under the same statutory structure, but 69 00:03:50,280 --> 00:03:53,520 Speaker 1: the president declared a national emergency during the Korean war 70 00:03:53,600 --> 00:03:56,480 Speaker 1: effort and wanted to nationalize the steel to make sure 71 00:03:56,520 --> 00:03:59,480 Speaker 1: we would have a steady supply of steel to help 72 00:03:59,520 --> 00:04:03,800 Speaker 1: fuel the war effort. UM. And that, however, went pretty 73 00:04:03,880 --> 00:04:07,920 Speaker 1: much against the Teff Hartley Act, which sort of structured 74 00:04:08,360 --> 00:04:13,119 Speaker 1: when the president could use the power to UM take 75 00:04:13,160 --> 00:04:18,120 Speaker 1: away the ability of employees to bargain for their salaries 76 00:04:18,160 --> 00:04:21,360 Speaker 1: and so forth. UM and the Court then felt that 77 00:04:21,360 --> 00:04:26,960 Speaker 1: that because Congress had acted that the president had exceeded 78 00:04:27,320 --> 00:04:30,960 Speaker 1: his constitutional powers. Would this be the same thing. I 79 00:04:30,960 --> 00:04:34,559 Speaker 1: think what people need to recognize is when even if 80 00:04:34,960 --> 00:04:39,400 Speaker 1: the president exercised this power to create a national emergency, 81 00:04:39,480 --> 00:04:42,120 Speaker 1: he then needs to have money to fund the wall. 82 00:04:42,480 --> 00:04:45,160 Speaker 1: And to get the money to fund the wall, most 83 00:04:45,200 --> 00:04:47,000 Speaker 1: people think the only way he could do it was 84 00:04:47,040 --> 00:04:50,240 Speaker 1: to take money that was already appropriated by Congress to 85 00:04:50,360 --> 00:04:53,760 Speaker 1: the to the Defense Department and reallocate it to his 86 00:04:53,880 --> 00:04:56,880 Speaker 1: law project. That's going to step on people's toes. It's 87 00:04:56,880 --> 00:05:00,159 Speaker 1: going to step on Republican members of Congress who like 88 00:05:00,240 --> 00:05:03,479 Speaker 1: the projects that given to the Department of Defense, and 89 00:05:03,560 --> 00:05:06,960 Speaker 1: that will, I think, be the kind of context in 90 00:05:07,000 --> 00:05:11,880 Speaker 1: which a more successful challenge will take place. If Congress says, no, 91 00:05:12,000 --> 00:05:15,000 Speaker 1: we want the money that we previously given to the 92 00:05:15,200 --> 00:05:17,839 Speaker 1: Department of Defense for X or Y project, we want 93 00:05:17,880 --> 00:05:20,640 Speaker 1: that to go forward, then it would be seen that 94 00:05:20,720 --> 00:05:23,359 Speaker 1: the President would be acting in the teeth of a 95 00:05:23,480 --> 00:05:27,440 Speaker 1: congressional direction. So I think that at that point it's 96 00:05:27,480 --> 00:05:29,839 Speaker 1: more likely that the court would step in. I don't 97 00:05:29,880 --> 00:05:32,160 Speaker 1: think a court would step in at this initial phase 98 00:05:32,600 --> 00:05:35,920 Speaker 1: just when the president announces an emergency, because there have 99 00:05:36,000 --> 00:05:39,400 Speaker 1: been so many emergencies in different contexts before Harold. Who 100 00:05:39,440 --> 00:05:42,960 Speaker 1: would have the standing to bring this kind of an action, 101 00:05:42,960 --> 00:05:46,479 Speaker 1: in other words, who would be injured and be able 102 00:05:46,560 --> 00:05:50,680 Speaker 1: to state the case in a federal court. My best 103 00:05:50,680 --> 00:05:54,279 Speaker 1: guess at this time is that if money was shifted 104 00:05:54,360 --> 00:05:59,000 Speaker 1: from project X or Y, the individuals who would benefit 105 00:05:59,040 --> 00:06:03,119 Speaker 1: from that project. There's defense industries, employees to be paid 106 00:06:03,120 --> 00:06:06,680 Speaker 1: on those projects would then have standing to say, but 107 00:06:06,920 --> 00:06:10,400 Speaker 1: for this emergency, we would have the money to continue 108 00:06:10,400 --> 00:06:14,080 Speaker 1: this Department of Defense project, and now we don't, And 109 00:06:14,120 --> 00:06:16,080 Speaker 1: therefore we can go to court to say that it 110 00:06:16,160 --> 00:06:19,000 Speaker 1: was an illegitimate act of the president, um, in the 111 00:06:19,080 --> 00:06:23,640 Speaker 1: face that what I'm predicting will be a congressional response, um. 112 00:06:23,760 --> 00:06:28,240 Speaker 1: And therefore that the court should enjoying the president from 113 00:06:28,240 --> 00:06:32,120 Speaker 1: pursuing funding for the project. But I do think, uh 114 00:06:32,800 --> 00:06:35,200 Speaker 1: my gut tells me that at the first level, no 115 00:06:35,240 --> 00:06:39,920 Speaker 1: one will be successful at challenging the declaration of an 116 00:06:39,960 --> 00:06:43,360 Speaker 1: emergency by itself, um, but rather have to wait until 117 00:06:44,720 --> 00:06:48,080 Speaker 1: it reduces to a question of money. So you've written 118 00:06:48,080 --> 00:06:53,279 Speaker 1: on presidential powers. Has President Trump repeatedly by using his 119 00:06:53,600 --> 00:06:58,719 Speaker 1: executive powers, by issuing executive orders and now threatening to 120 00:06:58,720 --> 00:07:02,200 Speaker 1: declare a state of emergency, has he tried to expand 121 00:07:02,400 --> 00:07:07,000 Speaker 1: presidential powers? Well, he certainly believes in an expanded president, 122 00:07:07,040 --> 00:07:10,000 Speaker 1: but many presidents have, right. I mean, President Obama used 123 00:07:10,000 --> 00:07:13,520 Speaker 1: the executive order quite aggressively as well, and I think 124 00:07:13,560 --> 00:07:16,200 Speaker 1: that what he's done, I mean what he's done, and 125 00:07:16,520 --> 00:07:20,160 Speaker 1: it's certainly the most adventurous that you had adverted to 126 00:07:20,320 --> 00:07:23,200 Speaker 1: earlier was the whole question about the Muslim band. You 127 00:07:23,240 --> 00:07:25,480 Speaker 1: know there. I think he was fast and loose with 128 00:07:25,960 --> 00:07:29,720 Speaker 1: authority by imposing that kind of band with such incredible 129 00:07:29,760 --> 00:07:36,360 Speaker 1: consequences with very little um either precedent or congressional support. Uh. 130 00:07:36,440 --> 00:07:39,360 Speaker 1: But I don't think he's used new tools to any 131 00:07:39,440 --> 00:07:42,560 Speaker 1: kind of extent. That's Harold Grandin of the Chicago Kent 132 00:07:42,720 --> 00:07:47,880 Speaker 1: College of Law. Thanks for listening to the Bloomberg Law Podcast. 133 00:07:48,240 --> 00:07:52,320 Speaker 1: You can subscribe and listen to the show on Apple Podcasts, SoundCloud, 134 00:07:52,400 --> 00:07:56,280 Speaker 1: and on Bloomberg dot com slash podcasts. I'm June Brosso. 135 00:07:56,760 --> 00:08:02,040 Speaker 1: This is Bloomberg. The d end't end up in the 136 00:08:02,400 --> 00:08:02,440 Speaker 1: n