How does the legal field shift with a new President?

Changes in a U.S. administration typically signal shifts in economic priorities, social and environmental initiatives, and foreign policy. As the new Trump administration takes office, commentators are assessing the potential impact on legal work. Firms can expect demand shifts in areas of practice and pressures on billable hour targets. Let’s have a look at what might be to come with the expected priorities of this new administration.

Caution with politics

Prior to the last Trump administration, lawyers were split as to how they approached politics. Some were overtly political, almost activist, while others took a neutral stance. The traditional role of the lawyer is to advocate for clients within the scope of the law. The last time around, some commentators recommended lawyers not advance tenuous legal claims to support political positions, as it could reflect poorly on the profession.

Larger law firms tend to stay away from politics for fear of offending clients. Big firms tend to have big corporate clients who are also experiencing the same uncertainty about how to engage with the new administration. Law firms often become proxies for clients and don’t have the independence to take a political stance. Small practices might have more flexibility, depending on their niche area of practice and the challenges faced by their clients.

Deregulation

The new Trump administration is expected to usher in significant deregulation. This is expected to boost traditional energy sectors like oil, gas, and coal, while reducing investment in environmental, social, and governance (ESG) initiatives. 

Some commentators posit this will lead to greater energy profits, with a domino effect for lawyers. Profits often lead to greater investment and corporate deal making which are facilitated by legal work. At the same time, it’s likely groups will push back on deregulation, which can mean an uptick in litigation as they challenge these changes in court.

Inflation

Trump intends to impose tariffs on imported goods to increase U.S. manufacturing. Some commentators say this could lead to inflation or higher prices within the U.S. market. As a result of higher prices, law firms could see their expenses rise. As everything costs more along the supply chain, it could cost firms more to run their practices.

Potentially rising expenses could be balanced by the ability of firms to increase their fees. Many firms already adjust their pricing according to inflation, so this trend could simply continue. If the demand for legal services sustains or even increases, revenue could outpace rising expenses. It is uncertain whether that balance could maintain over the long term, as economic strain is felt across sectors.  

Geopolitical challenges

It’s possible that economic uncertainty, armed conflicts, and other global challenges can lead to an ongoing period of instability. Large law firms have long sustained by adapting to cycles in legal demand. When times are tough, there’s more work for bankruptcy and labor attorneys. But when a crisis hits that is out of pace with the normal cycles, the need for lawyers might go down and it might take years to recover.

Therefore the short-term increase driven by energy profits might be quickly outdone by a comprehensive environment of instability which means fewer billed hours. This, like the overall geopolitical state, is uncertain.  +

Immigration 

The new Trump administration has stated a desire to change immigration policy. This could impact immigrants already in the U.S., including those with legal status. There’s also a potential impact on businesses that rely on an immigrant workforce. A recent CNN report detailed how immigration attorneys are preparing for the new administration. 

Some lawyers are encouraging undocumented people to work with an attorney to look for ways to adjust legal status. Others are distributing “know your rights” cards to inform people about their own rights while in the U.S. Still other attorneys are helping companies to prepare in the event of a loss of workforce after deportations.

Immigration lawyers working in small or solo firms, for non-profit organizations, or even large firms, might all see an increase in work. Much of this work might be anticipatory, as people ask lawyers to help them to confirm their status in the U.S. and prevent deportation. If a deportation plan is put into place, people should seek legal representation in greater numbers.

Health care

There will be an overall environment of deregulation combined with new figures at the head of the government’s critical health care agencies such as Health and Human Services (HHS) and Medicare. Some commentators have noted the possibility of less enforcement of health care regulations. 

Since much of this work is typically done by the Department of Justice (DOJ) and other government lawyers, the impact on small firms might be tangential. A personal injury attorney might see more family members of those harmed by deregulation who want to sue. On the flipside, those who want to take legal action might encounter a legal environment that’s less friendly to lawsuits from harmed individuals and their families.  

Social justice

During the prior Trump administration, there was much attention paid to changing rules around human rights and other social issues. Columbia University Law School regularly tracked these changes. In the new Trump term, there might be greater client loads for smaller firm attorneys who serve social justice advocates. This might be in the area of criminal law if people are arrested for protest activities, or in litigation if individuals want to challenge these changes in a court of law. 

Market your firm with Martindale-Avvo

The legal environment is expected to shift rapidly with the incoming administration. Small firm or solo practices might have to change their marketing strategies to cater to changing client demand. Consider partnering with Martindale-Avvo to enhance your firm’s digital marketing strategies and stay on pace with competitors in the industry. Contact us today to see what Martindale-Avvo has to offer.

Photo by AP | Evan Vucci