US Big Law: Firms Accelerate National Security Practice Expansion

• Several Big Law firms are expanding their national security practices due to increasing client focus on anti-money laundering, sanctions, export control, and CFIUS issues.
• Latham & Watkins, Sullivan & Cromwell, Nixon Peabody, and Morrison & Foerster have hired attorneys in this area in the past two months.
• Covington & Burling formally established its national security practice last month after years of providing related advice.
• Heightened CFIUS enforcement activity over the last four years, including new types of enforcement, is a significant driver of client demand.
• Firms anticipate continued growth in this market, requiring aggressive staffing to meet rising client needs in technology, financial services, and energy sectors.

This trend not only highlights a critical area of risk mitigation for businesses but also signals a significant growth area for legal practices specializing in national security law, positioning them at the forefront of evolving global regulatory challenges.

Several prominent US Big Law firms are significantly expanding their national security practices, a direct response to escalating client demands in critical regulatory areas. This strategic US Big Law national security practice expansion reflects a market shift driven by heightened scrutiny around anti-money laundering (AML), international sanctions, export control regulations, and the Committee on Foreign Investment in the United States (CFIUS). Over the past two months alone, firms including Latham & Watkins, Sullivan & Cromwell, Nixon Peabody, and Morrison & Foerster have actively recruited new attorneys to bolster their specialized national security teams, according to a Law.com report published on August 17, 2026.

The client base fueling this growth spans vital sectors such as technology, financial services, and energy, industries frequently navigating complex cross-border transactions and compliance challenges. This proactive national security legal practice development is not limited to new hires; Covington & Burling, for instance, formally established its dedicated national security practice last month, building upon years of providing informal counsel in this intricate legal domain. These moves underscore a widespread recognition within the legal industry that specialized expertise in these areas is becoming indispensable for clients operating in an increasingly regulated global landscape.

A primary catalyst for this surge in legal demand, particularly within the CFIUS enforcement legal trends, is a notable uptick in regulatory actions. Paul Rosen, who joined Latham & Watkins as a partner in March 2025, highlighted to Law.com that enforcement activity by CFIUS has been a significant factor in driving client needs. Rosen observed a substantial increase in enforcement actions over the preceding four years, noting that these were unprecedented both in their sheer number and the diverse nature of the matters addressed.

Furthermore, Rosen pointed to the emergence of "new types of enforcement" under the Trump administration, signaling an evolving and expanding scope of government oversight. This environment of intensified scrutiny extends beyond CFIUS, contributing to a broader US export control legal demand and a growing need for sanctions compliance law firm growth. The confluence of these factors creates a complex regulatory environment where companies, especially those in sensitive industries, require sophisticated legal guidance to navigate potential risks and ensure robust compliance.

The current wave of national security legal practice development is not merely reactive but also forward-looking, anticipating sustained and increasing market demands. Rosen articulated this strategic outlook, telling Law.com, "We see the market moving in a particular direction, and so I don't think that there's any plan to sort of let up on being thoughtful but aggressive in how we approach staffing." This statement underscores a commitment to continuous investment in this practice area, reflecting a belief that the current market conditions are indicative of future trends.

He further emphasized the enduring nature of these pressures, stating, "This is where we see the market currently is, and the demands are only going to grow." This perspective suggests that lawyers and compliance officers should anticipate heightened enforcement activity across CFIUS, sanctions, and export control regimes. Consequently, a thorough review of client exposure and internal compliance programs will be essential. This trend not only highlights a critical area of risk mitigation for businesses but also signals a significant growth area for legal practices specializing in national security law, positioning them at the forefront of evolving global regulatory challenges.

Lawyers and compliance officers should anticipate heightened enforcement activity in CFIUS, sanctions, and export control, necessitating a review of client exposure and internal compliance programs. This trend also signals a significant growth area for legal practices specializing in national security law.

Source: Original reporting via Law.com