'Sharp and Profound' Policy Shifts Prompt DC Law Firms to Evaluate Opportunities, Challenges

President-elect Donald Trump's second term could shake things up for Big Law firms in Washington, D.C., with firm leaders anticipating big changes in their regulatory practices. Partners say they expect certain practices to benefit from Trump's regulatory agenda, such as international trade, antitrust, tax and national security. At the same time, some areas may see a slowdown, such as FDA and renewable practices.

"We certainly expect with a change in administration that certain practices are going to be impacted perhaps more so than others. And some of the regulatory practices, for instance, international trade, which is my practice, will definitely be impacted," said Ajay Kuntamukkala, Hogan Lovells' D.C. office managing partner.

Trade practices may see some of the largest spikes in demand, with Trump pledging to impose sweeping new tariffs on foreign goods entering the U.S.

"Customs matters are likely to increase in number, as companies are further impacted by any increases to tariffs on Chinese-origin goods or goods from other countries," said Holland & Knight international trade partner Andrew McAllister, in an email. "On the flip side, we expect that there will be further export control regulations associated with semiconductors and other building blocks of technology."

More broadly across practices, Andrew Olmem, managing partner of Mayer Brown's D.C. office, said they are anticipating a busy 2025 "not only from a regulatory standpoint but also from a legislative" one.

"There's going to be a sharp and profound shift in U.S. government policy across the board, from tax and energy policy to trade and antitrust," said Olmem. "Clients are already anticipating significant needs for counsel to help them navigate these changes, these regulatory changes, and also statutory changes."

Enforcement Approach

In general, Trump's rhetoric about excessive regulation and government waste could indicate a more hands-off approach to business competition and financial regulation.

"You probably will see a more business-friendly disposition from the government," said Emmet Ong, a partner in Bryan Cave Leighton Paisner's financial services disputes and investigations practice. "On the other hand, I think we would caution companies that the sort of everyday regulatory enforcement agenda probably won't change all too much. You're not going to see, for instance, the SEC stop bringing enforcement actions. You're not going to necessarily see the DOJ not bring prosecutions."

Still, some industry observers have indicated that the Justice Department under the Trump administration may be less likely to pursue corporate prosecutions.

Regardless, Ong indicated that some uncertainty over how the Trump administration will approach financial services regulation, particularly in light of the U.S. Supreme Court striking down the Chevron doctrine, may send clients to the firm.

In fact, clients have already been flooding attorney's inboxes with questions.

"The biggest interest we have seen is for immediate advice on what to expect across all our regulatory practices: will deals be easier to clear, where will there be deregulation, and what will that mean," Mandy Reeves, Latham & Watkins' D.C. office managing partner, said in an emailed comment. "The last Trump administration was not lax on antitrust enforcement, but the climate was more predictable, so clients are especially focused on what to expect at the FTC and DOJ and what that means for the deal climate under new leadership."

Within Steptoe's energy group, chair Daniel Mullen said they have seen client "questions that relate to agencies across the energy landscape. From FERC to CFTC to DOE to EPA, as well as tax and trade questions."

Potential Slowdowns

There may also be some areas that see a slowdown in demand once the dust has settled, as Trump has expressed interest in rolling back a number of Biden-era regulations.

"The general approach of deregulation certainly could hit certain practices. For instance, environmental practices and enforcement of environmental laws, you could potentially see a slowdown," said Kuntamukkala. "FDA that's an interesting one, because you have RFK Jr. saying that there should be no new vaccines. And I don't know that that would be [the] Trump administration's view, but certainly, there could be an impact on what drugs are approved, the scrutiny that drugs may have."

Peggy Bennett, managing director at Macrae's D.C. office, echoed that EPA and environmental-related matters may slow down under Trump.

Revolving Door

While there are still a number of questions remaining about the Trump administration's regulatory agenda, the fact that there will be a change in hands, is already sending a number of attorneys on the job market, from career civil servants to political appointees.

"It's very normal to have the revolving door with a change in administration, for a lot of reasons. What we are seeing right now is a little bit more. People have stronger feelings on this than typical years past," said Dan Binstock, a partner at Garrison. "It's resulting in more black or white thinking on whether to stay in the government."

Firm leaders and recruiters expressed there could be a surge in hiring from the government in store, particularly at the start of next year.

"I think we will continue to be opportunistic as a D.C. office when it comes to our lateral hiring, as well as our mix of work," said Kuntamukkala. "Each of the practice areas, they'll look at who's coming out of the administration, whether there's a fit."

“Reprinted with permission from the November 8th edition of National Law Journal © 2024 ALM Properties, Inc. All rights reserved. Further duplication without permission is prohibited.”