The 150-Hour Rule Is Falling: 11 States Have Already Dropped It, 40 More Expected by 2026

The 150-credit-hour requirement — a near-universal barrier to CPA licensure since the 1980s — is being dismantled. In May 2025, NASBA and the AICPA approved a third pathway to CPA licensure requiring only a bachelor's degree (120 credit hours) plus two years of professional experience. As of early 2026, eleven states have passed the enabling legislation and forty or more are expected to follow by year end.

Why the 150-hour rule is being dropped

The accounting profession is facing a significant talent shortage. In 2024, 74,165 candidates sat the CPA exam — but only 13,070 passed their final section and became newly licensed CPAs. The 150-hour requirement has long been identified as a deterrent: it effectively mandates a fifth year of education beyond a standard four-year degree, adding cost and time that many candidates — particularly those from lower-income backgrounds — cannot absorb. The new pathway trades the extra year of education for an extra year of work experience.

State-by-state rollout

The new pathway requires individual state adoption — there is no federal mandate. As of early 2026, eleven states have enacted legislation, with Ohio's changes effective January 1, 2026. An accounting professor cited in CFO Dive forecasts that between 40 and 45 states will have made the change by the end of 2026. Candidates must check their specific state board for confirmation.

What this means for candidates

• If you have a four-year accounting degree and were deterred by the 150-hour requirement, check whether your state has adopted the new pathway
• The trade-off is real — two years of experience instead of extra education. For most working candidates, this is a better deal
• The exam itself is unchanged — all three pathways lead to the same CPA exam and the same credential
• Candidates planning to Practice across multiple states should watch for mobility rule updates, which are being revised alongside the new pathways