When headlines coming out of Washington sound like something for legal scholars or political commentators, it’s easy to assume they have nothing to do with your investments, your retirement account, or your household budget.

Sometimes, that assumption is wrong.

On May 11, senior Trump advisor Stephen Miller said in an interview that the administration is “actively looking at” suspending habeas corpus. For those who might not recall their high school civics class, habeas corpus is the constitutional right that protects anyone—citizen or not—from  being detained without judicial review.

To anyone who values the founding principles of this nation, the concept of suspending habeas corpus (outlined in Article I, Section 9 of the U.S. Constitution) is no small matter. It is far more significant than headlines about tariffs or trade wars. The implications for your financial security could be enormous.

The Trump administration’s argument is that the U.S. faces an “invasion” at the southern border. The Constitution does allow for the suspension of habeas corpus in cases of rebellion or invasion, but legal experts across the political spectrum agree that immigration has never been defined as an invasion by the courts. More importantly, the Constitution gives Congress—not the president—the  authority to make that decision.

This would not be the first time a president tested the limits of executive power. Many of this administration’s numerous executive orders on immigration have already faced legal challenges for overstepping constitutional boundaries. Yet, if the evasive statement by Wyoming Sen. John Barrasso on Meet the Press is any indicator, it is not clear whether the current Congress would be willing to assert its authority on the issue of habeas corpus.

If the administration, or even Congress, succeeds in redefining “invasion” to justify suspending habeas corpus, the implications will extend beyond immigration. It would open the door to detaining anyone, including U.S. citizens, without access to a court.

The result would be a financial crisis as well as a legal one. Financial markets thrive on stability, the rule of law, and predictable governance. When those things are thrown into doubt, investors get nervous. History offers several examples. After Nixon imposed wage and price controls in 1971, the S&P 500 dropped by 11 percent. During the Watergate scandal, the market fell by 16 percent between 1973 and 1974.

When political stability erodes, borrowing costs rise. That eventually hits consumers’ mortgage rates, credit card interest, and the prices they pay for goods and services. 

Instability might also lead to foreign investors pulling money out of U.S. markets, weakening the dollar and pushing up inflation. We have seen this pattern in places like Argentina, Turkey, and Venezuela, where government overreach led to economic turmoil and social unrest.

Another risk is that suspending legal protections for one group opens the door to limiting them for other groups. Property rights, financial contracts, and privacy rights could be threatened in an environment where judicial oversight is undermined. History is full of examples of how quickly rights can erode once due process is set aside.

The possible suspension of habeas corpus and this administration’s other threats to the rule of law do matter. They have the potential to affect your financial security, your cost of living, and your ability to trust that the financial rules will not change overnight.

What can you do? Don’t panic; do pay attention. Get your news from unbiased sources, consider contacting your members of Congress, and review your investment allocations with an eye toward flexibility. 

Constitutional stability is as important to financial markets and a nation’s economy as monetary policy. When legal protections fall, financial security is never far behind.

Rick Kahler, CFP, is a fee-only financial planner and financial therapist with a nationwide practice, Kahler Financial Group, based in Rapid City. His co-authored books include Coupleship Inc. and The Financial Wisdom of Ebenezer Scrooge.

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