If you’ve been following Certified Public Accountant (CPA) licensure news, you’ve likely heard that the traditional 150-credit-hour rule is evolving. Like many candidates, you might be wondering what this means for you.
The American Institute of Certified Public Accountants (AICPA®) and National Association of State Boards of Accountancy (NASBA) have introduced a new, more flexible 3-pathway model for CPA licensure. These changes are already being adopted across many states and are expected to shape the profession’s future.
In this guide, we’ll walk through what’s changing, why it matters, and how you can confidently plan your path forward to becoming a licensed CPA.
Why Is CPA Licensure Changing?
During the past several decades, the 150-credit-hour requirement has become a cornerstone of CPA licensure in most U.S. states. While well-intentioned, it has created barriers, particularly for students concerned about higher education costs, time, and when they plan to enter the profession.
The accounting profession has taken notice. Firms, educators, and governing bodies have all raised concerns about a shortage of prospective accountants pursuing academic studies in accounting and licensure (a declining CPA candidate pipeline), as well as rising education costs and delayed entry into the workforce.
The new licensure model is designed to address these issues without compromising the rigor or credibility of the CPA designation. Instead of a 1-size-fits-all approach, candidates now have multiple pathways to demonstrate readiness.
What Did AICPA® and NASBA Approve?
At the center of this shift is a model legislation framework that introduces 3 distinct pathways to licensure. While individual states ultimately decide how to implement these changes, the model provides a consistent foundation.
3 Pathways to Licensure
Under the new model, candidates can choose from the following:
Bachelor’s degree in accounting (120 credit hours) + 30 additional credit hours (total 150 credit hours) + 1 year of professional accounting experience + passage of the CPA Exam
Graduate degree in accounting + 1 year of professional accounting experience + passage of the CPA Exam
Bachelor’s degree in accounting (120 credit hours) + 2 years of professional accounting experience + passage of the CPA Exam
This structure maintains the core components: education, experience, and examination. The difference lies in how flexibly they’re balanced.
Proposed Alternative Pathway
The most discussed change is the 120-credit-hour pathway, which allows candidates to sit for licensure sooner by substituting additional work experience for the extra 30 credit hours.
For many candidates, this can:
- Reduce the financial burden of graduate-level education
- Accelerate entry into the profession
- Provide earlier access to real-world learning
How Are States Adopting the New CPA Licensure Pathways?
As these changes roll out, it’s important to know that the transition to new CPA licensure pathways isn’t happening all at once. Instead, it’s unfolding state by state, with important implications for how and where you pursue your license. After all, states are not required to adopt any specific pathway as written in the AICPA/NASBA model, and each state board and legislature will decide which pathways to follow.
Why It’s Different in Every State
CPA licensure has always been state-based, and that hasn’t changed. Each jurisdiction determines education requirements, experience qualifications, and the timing of adoption. This means candidates must continue to check state-specific requirements before making decisions.
Where Things Stand in 2026
As of 2026, most states have either adopted or are in the process of adopting elements of the new pathway model. However, implementation timelines vary. Some states have already introduced or passed legislation, while others are evaluating how best to align with the model.
Does This Mean the 150-Credit-Hour Rule Is Gone?
The 150-credit-hour pathway remains fully intact and will likely remain a preferred option for some candidates, particularly those planning to pursue advanced degrees or specialize early.
Think of the new model as expanding your options, not replacing them. Each pathway has its advantages depending on your academic and professional goals.
The key is knowing which states have adopted pathways that fit your career timeline.
What This Means for CPA Candidates
For candidates, this is a meaningful shift that introduces both opportunity and responsibility. On the 1 hand, you now have greater flexibility in how you meet requirements, more control over costs and timing, and multiple ways to demonstrate competence. On the other hand, the added options require more intentional planning. Consider the following questions:
- Do I want to enter the workforce as soon as possible?
- Am I planning to pursue a master’s degree in accounting anyway?
- Would additional professional work experience benefit my long-term goals?
There’s no universally correct answer, and that’s what makes this 3-pathway model beneficial for aspiring CPAs. The right answer is the 1 that fits your situation.
What Should You Do Now?
If you’re currently planning your CPA journey, here are 4 practical steps:
- Check your state requirements.
Start with guidelines dictated by your state board of accountancy to understand current and upcoming rules. - Evaluate your timeline.
Decide whether entering the workforce sooner or pursuing additional education makes more sense for you, and which is attainable. - Think long term.
Consider how your chosen pathway aligns with your overall career goals, not just licensure. - Stay informed.
As more states adopt the model, requirements may continue to evolve.
How UWorld Is Responding to These Changes
At UWorld, we recognize that flexibility in licensure pathways doesn’t change the rigor of the CPA Exam. That’s why our focus continues to be on helping candidates build deep conceptual understanding, apply knowledge in real-world scenarios, and study efficiently, regardless of their chosen pathway. Aspiring CPAs accomplish this with help from our CPA Review Course.
Whether you’re pursuing 120 credit hours or 150, success on the CPA Exam still requires clarity, consistency, and confidence.
Choosing Your Path to Licensure
Change in professional licensure can feel unsettling, especially when you’re already navigating a demanding exam process.
Frequently Asked Questions (FAQs)
References
- National Association of State Boards of Accountancy. (2025, Dec. 23). New CPA licensure pathways and CPA mobility.
https://nasba.org/blog/2025/12/23/new-cpa-licensure-pathways-and-cpa-mobility/
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