A new federal mandate will require law firms that use cloud services for U.S. government agency data to use providers with FedRAMP Authorization by the start of 2027. This regulatory shift extends existing government security standards to external legal partners, making compliance a critical factor for firms wishing to retain or secure federal contracts. The rule aims to standardize security protocols for sensitive federal information stored in third-party cloud environments.
The upcoming 2027 deadline formalizes a requirement that any cloud service used by legal counsel to store or process federal client data — such as case files, discovery materials, or correspondence — must meet the stringent security and monitoring standards of the Federal Risk and Authorization Management Program (FedRAMP).
According to an analysis from cloud provider NetDocuments, firms relying on non-authorized cloud solutions will be out of compliance, potentially jeopardizing their ability to work with federal agencies. This change was solidified by the 2022 FedRAMP Authorization Act, which codified the program as the mandatory governance model for federal cloud security.
The mandate comes in response to escalating cyber threats against public-sector organizations. In the first half of 2025 alone, there were 208 reported ransomware attacks on government agencies globally, which represents a 65% increase over the same period in 2024. FedRAMP provides a standardized security framework based on NIST 800-53 controls to safeguard federal data.
The demand for authorized services is surging, with 114 cloud services receiving FedRAMP authorization in fiscal year 2025, more than double the number from the previous year. Reid Cram, Senior Product Marketing Manager for Public Sector at NetDocuments, stated, The speed at which we were able to achieve FedRAMP Authorization speaks to the readiness and security posture of our service.
The source material does not specify the exact penalties law firms will face for non-compliance after the deadline. Additionally, the precise mechanisms for how federal agencies will audit their external legal partners for compliance with the mandate have not been detailed.
Law firm IT leaders are advised to begin assessing their technology stack immediately to ensure compliance ahead of the deadline. This includes verifying that all systems handling government client data are FedRAMP Authorized and that vendor contracts position the firm for compliance. The U.S. Department of Justice has already set a precedent by making FedRAMP Authorization an “absolute requirement” in its selection of a document management system, deploying it to thousands of users across 94 judicial districts. Firms that proactively adopt compliant platforms may gain a competitive advantage in securing federal work.
To prepare for the mandate, legal and IT decision-makers should:
- Audit their current cloud services to identify any platforms storing federal data.
- Verify the FedRAMP status of each cloud vendor in their technology stack.
- Begin planning migration to FedRAMP Authorized platforms if current systems are not compliant.
- Incorporate FedRAMP requirements into future technology procurement and vendor selection processes.
- Ensure that responses to agency RFPs and contract renewals explicitly highlight the firm’s use of FedRAMP-secure infrastructure.
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