Written by - AJ Bashorun
A major regulatory shift is coming for legal professionals who handlegovernment agency data — and law firm IT leaders need to prepare now.Beginning in 2027, legal counsel that use cloud services to store or processclient information on behalf of a US government agency must ensure thosecloud providers are FedRAMP Authorized. Failure to meet this requirementcould result in non-compliance with federal regulations, jeopardizing agencyrelationships and exposing firms to critical risk.In a landscape where cyberattacks are accelerating and government clientsface unprecedented security pressures, FedRAMP has become the definitivestandard for secure cloud services. This blog breaks down what the 2027requirement means, why FedRAMP is now business-critical for firms servinggovernment agencies, and how forward-thinking technology decisions will setlegal organizations up for long-term compliance and competitive advantage.Why 2027 Matters: A ComplianceLine in the SandGovernment agencies have long been required to use FedRAMPAuthorized cloud solutions — but the new 2027 requirement extends thoseexpectations to any external party that stores or processes federal dataon an agency’s behalf. That includes law firms.For firms providing litigation, advisory, regulatory, or investigative supportto federal clients, this shift represents a meaningful compliance inflectionpoint. Any cloud service used to store case files, discovery materials,correspondence, or other agency data must meet strict federal security andmonitoring standards.This requirement carries real implications:● Firms relying on non-authorized cloud solutions will be out ofcompliance.● Agency RFPs and contract renewals will increasingly requireproof of FedRAMP-Authorized platforms.● Technology decisions made today will determine which firmsremain eligible for government work in 2027 and beyond.The takeaway: FedRAMP is no longer optional for law firms withgovernment clients — it’s becoming a prerequisite.Escalating Cyber Threats MakeFedRAMP EssentialCyberattacks against public-sector organizations are surging. In the firsthalf of 2025 alone, there were 208 ransomware attacks on governmentagencies worldwide, a 65% increase over the same period in 2024.Attackers target federal data for the same reasons agencies protect it sofiercely: national security, sensitive investigations, and public trust.Government agencies cannot afford risk — and they expect the samediligence from their external partners.Legal counsel managing agency data must ensure:● secure remote access,● encrypted storage,● robust auditing,● granular access controls, and● continuous security monitoring.FedRAMP provides a standardized, government-validated framework toachieve all of this. It is not just a certification — it’s a comprehensivesecurity model built on NIST 800-53 controls, designed specifically tosafeguard federal information in cloud environments.FedRAMP: The Gold Standard forCloud Security — Now Requiredfor Legal PartnersFedRAMP authorization means a cloud provider has undergone extensive,independent security assessments and meets stringent federalrequirements across areas such as encryption, access control, logging,incident response, and real-time monitoring.For law firms serving government agencies, using FedRAMP Authorizedsolutions offers critical advantages:1. Guaranteed Compliance with FederalRequirementsFedRAMP authorization is the federal government’s baseline expectationfor cloud security. In 2027, this becomes the expectation for legal partnersas well.2. A Trusted Security Framework Backed byContinuous MonitoringFedRAMP isn’t a one-time audit. Providers must maintain security vigilancethrough ongoing monitoring, monthly reporting, vulnerability management,and formal reassessments.3. Streamlined Agency Interactions and FasterApprovalsGovernment agencies benefit from the “approve once, use many” structure;using a FedRAMP platform eliminates extra security hurdles for legalpartners trying to onboard or expand services with agencies.4. Competitive Advantage in Federal WorkWith the 2027 mandate, firms lacking FedRAMP-secure infrastructure willface increasing difficulty competing for or retaining agency contracts.Why FedRAMP Is Surging inImportance NowMultiple forces have accelerated FedRAMP’s centrality in government andpartner cybersecurity:Cloud Adoption in Government Is SoaringAgencies have rapidly expanded cloud usage in response to remote work,digital transformation initiatives, and modernization mandates.Cyber Threats Are Outpacing TraditionalDefensesRansomware, state-sponsored threats, and supply-chain attacks haveincreased urgency around standardized security frameworks.FedRAMP Is Now Codified in LawThe 2022 FedRAMP Authorization Act formally established FedRAMP asthe required governance model for federal cloud security, strengtheningoversight, speeding adoption, and ensuring long-term stability.Legacy Tools Are Moving to the CloudAs on-premises legal and document systems transition to SaaS, vendorsmust pursue FedRAMP authorization to remain viable for government work.In fiscal year 2025 alone, 114 cloud services received FedRAMPauthorization — more than double the number in 2024 — highlightingskyrocketing demand.NetDocuments: A FedRAMPAuthorized Solution Purpose-Builtfor Legal and GovernmentWorkflowsNot all cloud platforms meet the rigorous standards required for handlinggovernment data. NetDocuments reached FedRAMP Authorization in 2021,becoming one of the first native-cloud document management platforms todo so.NetDocuments security-first architecture made the authorization processexceptionally efficient. As Reid Cram, Senior Product Marketing Managerfor Public Sector, explains:“The speed at which we were able to achieve FedRAMP Authorizationspeaks to the readiness and security posture of our service. Security hasbeen our guiding principle since our inception over 25 years ago.”Key capabilities that matter for law firms andfederal agencies:● Built-in governance and compliance controls● Advanced data loss prevention and encryption● Detailed access and permission controls● Full audit trails● Multi-tenant cloud architecture supporting complex security needs● Seamless integrations with Microsoft 365 and other legal-techsystemsNetDocuments is not just FedRAMP Authorized — it is designed for therealities of legal work, where collaboration, confidentiality, and complianceintersect.Proven at Federal Scale: The Department ofJustice Case StudyThe U.S. Attorney’s Office selected NetDocuments as its agency-widedocument management system, deploying to thousands of users across all94 judicial districts. The selection committee explicitly identified FedRAMPAuthorization as an “absolute requirement” for handling DOJ’s sensitivedata.This deployment demonstrates more than compliance — it validates theplatform’s ability to meet the complex, distributed needs of one of thenation’s largest legal organizations.The Path Forward: Preparing forthe 2027 MandateThe 2027 requirement represents a clear shift in regulatory expectations forfirms supporting government agencies. IT leaders must begin assessingtheir tech stack now to ensure:● All systems handling government client data are FedRAMPAuthorized● Vendors have demonstrated ongoing compliance and monitoring● Integrations, workflows, and security posture support federalrequirements● Contracts and RFP responses position the firm as fully compliant wellahead of deadlinesFirms that act early will strengthen their government partnerships.Firms that delay risk losing them.Bottom LineThe 2027 mandate underscores one undeniable reality:When legal counsel handles federal data, FedRAMP is no longeroptional — it is the standard.For law firms serving government clients, adopting FedRAMP Authorizedsolutions is now the surest path to compliance, security, and long-termcompetitive viability.Platforms like NetDocuments offer a proven, secure foundation for meetingfederal requirements while delivering the productivity and collaborationtools legal professionals rely on every day.The time to prepare is now - before compliance becomesa constraint rather than an opportunity
