A major regulatory shift is coming for legal professionals who handle government agency data — and law firm IT leaders need to prepare now. Beginning in 2027, legal counsel that use cloud services to store or process client information on behalf of a US government agency must ensure those cloud providers are FedRAMP Authorized. Failure to meet this requirement could result in non-compliance with federal regulations, jeopardizing agency relationships and exposing firms to critical risk.

In a landscape where cyberattacks are accelerating and government clients face unprecedented security pressures, FedRAMP has become the definitive standard for secure cloud services. This blog breaks down what the 2027 requirement means, why FedRAMP is now business-critical for firms serving government agencies, and how forward-thinking technology decisions will set legal organizations up for long-term compliance and competitive advantage.

Why 2027 Matters: A Compliance Line in the Sand

Government agencies have long been required to use FedRAMP Authorized cloud solutions — but the new 2027 requirement extends those expectations to any external party that stores or processes federal data on an agency’s behalf. That includes law firms.

For firms providing litigation, advisory, regulatory, or investigative support to federal clients, this shift represents a meaningful compliance inflection point. Any cloud service used to store case files, discovery materials, correspondence, or other agency data must meet strict federal security and monitoring standards.

This requirement carries real implications:

• Firms relying on non-authorized cloud solutions will be out of compliance.
• Agency RFPs and contract renewals will increasingly require proof of FedRAMP-Authorized platforms.
• Technology decisions made today will determine which firms remain eligible for government work in 2027 and beyond.

The takeaway: FedRAMP is no longer optional for law firms with government clients — it’s becoming a prerequisite.

Escalating Cyber Threats Make FedRAMP Essential

Cyberattacks against public-sector organizations are surging. In the first half of 2025 alone, there were 208 ransomware attacks on government agencies worldwide, a 65% increase over the same period in 2024. Attackers target federal data for the same reasons agencies protect it so fiercely: national security, sensitive investigations, and public trust.

Government agencies cannot afford risk — and they expect the same diligence 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 to achieve all of this. It is not just a certification — it’s a comprehensive security model built on NIST 800-53 controls, designed specifically to safeguard federal information in cloud environments.

FedRAMP: The Gold Standard for Cloud Security — Now Required for Legal Partners

FedRAMP authorization means a cloud provider has undergone extensive, independent security assessments and meets stringent federal requirements across areas such as encryption, access control, logging, incident response, and real-time monitoring.

For law firms serving government agencies, using FedRAMP Authorized solutions offers critical advantages:

1. Guaranteed Compliance with Federal Requirements

FedRAMP authorization is the federal government’s baseline expectation for cloud security. In 2027, this becomes the expectation for legal partners as well.

2. A Trusted Security Framework Backed by Continuous Monitoring

FedRAMP isn’t a one-time audit. Providers must maintain security vigilance through ongoing monitoring, monthly reporting, vulnerability management, and formal reassessments.

3. Streamlined Agency Interactions and Faster Approvals

Government agencies benefit from the “approve once, use many” structure; using a FedRAMP platform eliminates extra security hurdles for legal partners trying to onboard or expand services with agencies.

4. Competitive Advantage in Federal Work

With the 2027 mandate, firms lacking FedRAMP-secure infrastructure will face increasing difficulty competing for or retaining agency contracts.

Why FedRAMP Is Surging in Importance Now

Multiple forces have accelerated FedRAMP’s centrality in government and partner cybersecurity:

Cloud Adoption in Government Is Soaring

Agencies have rapidly expanded cloud usage in response to remote work, digital transformation initiatives, and modernization mandates.

Cyber Threats Are Outpacing Traditional Defenses

Ransomware, state-sponsored threats, and supply-chain attacks have increased urgency around standardized security frameworks.

FedRAMP Is Now Codified in Law

The 2022 FedRAMP Authorization Act formally established FedRAMP as the required governance model for federal cloud security, strengthening oversight, speeding adoption, and ensuring long-term stability.

Legacy Tools Are Moving to the Cloud

As on-premises legal and document systems transition to SaaS, vendors must pursue FedRAMP authorization to remain viable for government work.

In fiscal year 2025 alone, 114 cloud services received FedRAMP authorization — more than double the number in 2024 — highlighting skyrocketing demand.

NetDocuments: A FedRAMP Authorized Solution Purpose-Built for Legal and Government Workflows

Not all cloud platforms meet the rigorous standards required for handling government data. NetDocuments reached FedRAMP Authorization in 2021, becoming one of the first native-cloud document management platforms to do so.

NetDocuments security-first architecture made the authorization process exceptionally efficient. As Reid Cram, Senior Product Marketing Manager for Public Sector, explains:

“The speed at which we were able to achieve FedRAMP Authorization speaks to the readiness and security posture of our service. Security has been our guiding principle since our inception over 25 years ago.”

Key capabilities that matter for law firms and federal 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-tech systems

NetDocuments is not just FedRAMP Authorized — it is designed for the realities of legal work, where collaboration, confidentiality, and compliance intersect.

Proven at Federal Scale: The Department of Justice Case Study

The U.S. Attorney’s Office selected NetDocuments as its agency-wide document management system, deploying to thousands of users across all 94 judicial districts. The selection committee explicitly identified FedRAMP Authorization as an “absolute requirement” for handling DOJ’s sensitive data.

This deployment demonstrates more than compliance — it validates the platform’s ability to meet the complex, distributed needs of one of the nation’s largest legal organizations.

The Path Forward: Preparing for the 2027 Mandate

The 2027 requirement represents a clear shift in regulatory expectations for firms supporting government agencies. IT leaders must begin assessing their tech stack now to ensure:

• All systems handling government client data are FedRAMP Authorized
• Vendors have demonstrated ongoing compliance and monitoring
• Integrations, workflows, and security posture support federal requirements
• Contracts and RFP responses position the firm as fully compliant well ahead of deadlines

Firms that act early will strengthen their government partnerships. Firms that delay risk losing them.

Bottom Line

The 2027 mandate underscores one undeniable reality:

When legal counsel handles federal data, FedRAMP is no longer optional — it is the standard.

For law firms serving government clients, adopting FedRAMP Authorized solutions is now the surest path to compliance, security, and long-term competitive viability.

Platforms like NetDocuments offer a proven, secure foundation for meeting federal requirements while delivering the productivity and collaboration tools legal professionals rely on every day.

The time to prepare is now — before compliance becomes a constraint rather than an opportunity.You can start the post with something more visually prominent like a lead in if you want – lorem ipsum dolor sit amet, consectetur adipiscing elit.