The 150-Hour Rule Is Changing: New Pathways to CPA Licensure
For half a century, becoming a licensed CPA has meant completing 150 semester hours of education. In 2025 that long-standing rule began to change, as a wave of states enacted new, more flexible pathways to licensure — and NASBA and the AICPA updated their model rules to match.
The traditional path
The classic route to CPA licensure combines 150 credit hours of education, passing the Uniform CPA Examination, and (typically) one year of qualifying experience. The extra 30 hours beyond a standard bachelor’s degree have been a cost and time barrier for many candidates.
What is changing
To address the well-documented shortage of new accountants, a number of states passed legislation in 2025 adding an alternative pathway — commonly a bachelor’s degree (about 120 hours) plus an additional year of experience (two years total) and passage of the CPA Exam, in lieu of the 150-hour requirement. NASBA and the AICPA also revised the model Uniform Accountancy Act (UAA) to incorporate an additional pathway.
What it means for candidates and firms
- Aspiring CPAs may have more than one route to licensure — but the options are state-specific, so check your board.
- Timing matters: states are phasing these changes in on different schedules.
- Firms recruiting new staff should understand the pathway their candidates are pursuing.
Stay ready with CPE Options
When the rules change, continuing education is how you keep up. Browse the catalog, cover a full year with an Unlimited Access plan, or see all CPE plans. Check your state’s ongoing requirements on our CPE requirements page.
This article is general information for accounting and finance professionals and is not legal or professional advice. Licensure, examination, and audit rules are set by individual state boards, NASBA, the AICPA, federal agencies, and other bodies, and they change and vary by jurisdiction — always confirm the current requirements with the relevant authority before relying on them.
