Legal Practice During the Trump Administration: Strategies for Lawyers of Color

As we enter the new year, it's time to gaze into our crystal balls and predict what's ahead under the new administration. Am Law 100 firms, known for their sophisticated practices in regulatory, transactional, and litigation areas, are likely to see increased opportunities as demand grows in response to shifting governmental priorities.

While forecasting is not an exact science, unlike weather predictions using Doppler radar — we can make informed guesses based on statements and signals from members of the incoming administration and corresponding conversations with firm management.

Reflections on white-collar practices under the Biden administration

At the beginning of the Biden administration, many believed white-collar practices would thrive due to the expected heightened focus on corporate accountability and enforcement. However, four years later, a mix of factors prevented this anticipated boom from materializing.

One significant reason was the Department of Justice's diverted attention to urgent matters arising from the global pandemic. Cybersecurity and pandemic-related fraud consumed substantial resources, drawing focus away from the resource-intensive investigations typical of white-collar cases. Additionally, the expectation of heightened scrutiny led many corporations to self-regulate by strengthening compliance programs and proactively avoiding potential violations. This trend reduced the number of prosecutable cases as businesses focused on adhering to regulations.

What's ahead for white-collar practices and beyond?

With the incoming administration, a shift in priorities is expected. Like the previous Trump administration, there may be reduced emphasis on enforcing certain regulatory actions, particularly in corporate fraud, environmental violations, and financial misconduct.

If this policy materializes, it could lead to fewer investigations and prosecutions, lessening the need for white-collar defense. However, white-collar practices are highly sensitive to policy shifts, and unexpected events — such as high-profile corporate scandals or regulatory overhauls — could reignite demand.

Here is a completely unscientific list of practice areas that appear to be on the rise.

Private credit

The financial sector was highly promoted in the previous Trump administration. If the anticipated reduction in regulatory burdens on lenders and investors materializes, the activity of companies seeking to take advantage of fewer regulations in deal structuring could spur on private credit activity; thus, the demand for private credit lawyers would continue to grow.PEM&A

With an expected increase in M&A activity through deregulation, tax reforms, and continued low interest rates, PE firms may increase leveraged buyouts — which in turn will rely on more private credit. A favorable environment for business growth, financing, and transactions could lead to an increase in deal work, which would lead to more work for PE/M&A lawyers.

Energy

Lawyers specializing in energy will possibly see changes from the current landscape as the incoming administration seeks to dismantle regulations and increase exploration for oil and gas, particularly on federal and previously restricted lands.

ESG

If the incoming administration scales back or dismantles financial and environmental regulations that are currently in place this could lead to a reduction in the burden for compliance on companies, thus limiting the areas of ESG enforcement. Such steps would thereby create new opportunities for lawyers to help their clients navigate the emerging challenges in an evolving regulatory landscape.

Scaling back disclosure requirements will weaken the SECs rules pertaining to climate related financial risks especially for public companies. On its face this may create less work for ESG lawyers in terms of helping their clients comply with currently mandatory rules of disclosure. However, there could be a path for ESG lawyers to find work with clients whose companies are interested in voluntarily maintaining or improving their environmental footprint to meet investor and consumer expectations. This would assist businesses in aligning their social strategies with shareholder interest, particularly in a market that increasingly values social responsibility.

With fewer regulatory requirements there will still be strong investor demand for good governance practices. ESG lawyers may focus more on advising clients on adopting best governance practices to attract capital and prevent shareholder activism.

Finance and banking

The incoming administration is telegraphing rollbacks of financial regulations, corporate tax reforms, and loosened lending restrictions; consequently, economic growth will be stimulated, which could in turn lead to increased borrowing and an even more active financial market. Subsequently, increased opportunities for financial institutions to increase lending, investment, and M&A would lead to more work, particularly for finance and banking lawyers.

Tax

Significant changes to corporate tax laws are apparent. Changes to the corporate tax rates, deductions or rules governing international tax corporations will require highly skilled experts to help navigate the new rules to ensure compliance and optimize companies' tax strategies.

International arbitration/trade

With signaling of trade wars with China or a more confrontational trade style, international arbitration lawyers will likely be in demand. Increased trade disputes over tariffs, trade barriers, intellectual property, and market access could be fertile ground for IA lawyers looking to sustain or grow their practice.

Lawyers with experience appearing before the World Trade Organization who are adept at navigating trade disputes, international trade agreement enforcement, and IP and tech in this new environment will be especially sought after.

Strategies for lawyers of color

The Trump administration's proposed changes will be felt across various practice areas; however, they offer both opportunities and challenges for law firm partners who are members of underrepresented minorities.

While there may be increased work in certain sectors (especially energy, M&A, and tax), minority partners may still encounter barriers to accessing high-profile work due to systemic biases, closed networks, and their lack of support of senior leadership. Additionally, the shift in focus away from issues like diversity and social justice could make it harder for minority partners to leverage the full potential of these changes, despite the increase in business opportunities.

First-generation law firm partners and those who are members of underrepresented minorities will require some creative thinking as the new landscape unfolds and they consider how best to navigate it while growing their practices. Here are several approaches they can take to adapt and thrive by leveraging transferable skills and exploring new opportunities.

Expand into related practice areas

For litigators — consider specializing in corporate compliance, advising companies on regulatory matters, risk mitigation, and ethics policies, which could become steady revenue streams.

A strategic pivot to focus on data privacy and cybersecurity, addressing growing concerns about AI misuse, cybercrime, and data breaches could also help to strengthen your practice and broaden your expertise.

Find a sponsor at your firm

If you have not already connected with a senior partner or someone of similar seniority who has the ear of firm management, I recommend doing so now. Building a relationship with a sponsor will provide you with support in case things slow down and will also give you the flexibility to pivot if that becomes necessary. See "How a sponsor can help you move up the ranks at a law firm, opens new tab," Reuters Legal News, Oct. 2, 2024.

Pursue pro bono or public interest work

Depending on your firm's policy on pro-bono work, this might be the perfect time to engage in impactful cases such as criminal justice reform or civil rights advocacy, which also broaden experience and professional networks.

Enhance client and business development skills

As a recruiter, it is always my advice to partners that they find ways to build relationships through networking, thought leadership, and active participation in industry associations.

Leverage diversity initiatives

Many firms still have programs aimed at fostering relationships with lawyers from diverse backgrounds. This may be the time to explore these programs at your firm if you have not already done so.

Focus on cross-border work

Foster pre-existing relationships with colleagues in offices outside of the US. If applicable, explore opportunities in international arbitration or fraud investigations, leveraging the interconnected global market.

Develop a niche expertise

Whether you are a litigator or a corporate lawyer you can stand out by specializing in emerging areas like ESG, health care, or cryptocurrency regulations. Additionally, understanding how to integrate niche areas into your practice, when applicable, could help you establish your expertise in an emerging field.

Engage in professional development

Stay current with certifications and training in relevant fields such as fraud examination or privacy law.

Join professional networks

Collaborate with organizations like the National Bar Association, the National Asian Pacific American Bar Association, the Hispanic National Bar Associate, the National LGBTQ+ Bar Association, the National Association of Women Lawyers, and the Minority Corporate Counsel Association for networking and mentorship opportunities.

Conclusion

The evolving legal market, while challenging, offers many opportunities for those who adapt proactively. Embracing diversity and inclusion initiatives, fostering relationships with clients who prioritize these values, and developing strong business acumen, will ensure that first generation partners can not only survive but thrive during these changes. By diversifying skills and staying attuned to industry shifts, lawyers of color can position themselves for success in this dynamic environment.