To respond to the evolving changes in the accounting profession resulting from technological innovation, pending retirements, and a shortage of accounting talent, a joint collaboration between the AICPA and NASBA resulted in the Ninth Edition of the Uniform Accountancy Act (UAA) in 2025.[1] The revisions to the UAA are expected to impact college accounting programs, students, and the profession more broadly.
Following is a summary of the new UAA provisions:
There are some who have expressed concern that the addition of the new pathway may negatively impact CPA exam pass rates. A look at the impact of a previous change may shed light on this concern.
1 – Licensure Pathways
In addition to the existing pathways to CPA licensure, the 2025 UAA tweaks the “three Es”—Education, Experience, and Exam—to provide another option.[2] The existing pathways include:
- A bachelor’s degree with an accounting concentration plus 30 additional credit hours, completing one year of qualifying experience, and passing the Uniform CPA Examination.
- A bachelor’s degree plus a master’s degree with an accounting concentration, completing one year of qualifying experience, and passing the Uniform CPA Examination.
The new optional pathway allows candidates to become CPAs if they have completed:
- A 120-credit bachelor’s degree with an accounting concentration,
- Two years of qualifying experience, and
- Passed the Uniform CPA Examination.
For those old enough to remember, this option was the pathway to licensure years ago, before the increase in the educational requirement was mandated. The AICPA has recognized that the 150-credit-hour requirement does not necessarily translate to practical skills and competencies necessary in the profession.
“Qualifying experience” means approximately 2,000 hours of supervised (by a licensed CPA), professional accounting work that demonstrates competency in core CPA skill areas. Each state’s Board of Accountancy oversees specific requirements.
Common qualifying fields include:
- Public accounting (audit, tax, assurance)
- Industry (corporate accounting, financial reporting, internal audit)
- Government (federal, state, or local accounting roles)
- Academia (teaching accounting at the college level)
There are important variations by state regarding whether tax-only experience, remote work, or teaching accounting qualifies. Oversight and disciplinary authority will continue to reside within each state’s Board of Accountancy. Some states, such as Minnesota, Mississippi, Vermont, Washington, and North Carolina, may have timeframe rules that relate qualifying experience to date of exam passage or date of licensure application.
2 – Mobility
The updated UAA shifts from a “state-based” mobility model to an “individual-based” practice privilege, where eligibility to practice is based on personal credentials—education, experience, and exam—not state boundaries. Individual-Based Practice Privilege will enable CPAs to practice more easily across state lines under one license.[3]
3 – Safe-Harbor (Legacy) Provision
For CPAs who were licensed under prior requirements (before December 31, 2024), “safe harbor” provisions are included so that CPAs continue to preserve their practice privileges under mobility.
4 – State Adoption
While the UAA is a model law, individual states must pass their own legislation and will need to individually ratify these changes through legislation or regulatory rule for the above provisions to take effect in that jurisdiction. For New York CPA candidates, these changes took effect when bill A7613B was signed into law by Governor Hochul on November 21, 2025.
Implementation dates will vary, so CPAs, CPA candidates, firms, and educators should closely monitor updates to stay informed. NASBA’s “New Licensure Pathways” webpage displays a list of jurisdictions that have adopted the new pathway into law as of December 3, 2025.[4]
Impact on Colleges and Accounting Education Programs
Colleges need to ensure that their bachelor’s degree programs clearly provide an “accounting concentration” that meets state Board requirements. As a result of the new optional pathway, students may opt to forego completing the extra course credits or a master’s degree. Colleges may, therefore, see declining demand for graduate accounting programs. It is expected that the new pathway may remove some of the barriers to entry into the CPA profession, and increase enrollment in undergraduate accounting programs. Although there may be a decline in some graduate accounting programs due to the new pathway, these programs could reposition themselves to emphasize specializations (e.g., tax, auditing, forensic accounting) or to serve second-career professionals.
A shift in college resources to practical experience integration, such as internships and partnerships with firms or incorporating experiential learning in classes, might be another consequence of the UAA changes, since the new licensure pathway focuses on the development of practical skills and experience.[5]
As these changes are implemented, advising students will be more challenging, and will need to reflect which states adopt the new pathway and where students will seek licensure.
Schools that offer programs that fit the “accounting concentration” requirements of their state Board and facilitate student experience will likely have a competitive advantage.
Impact on Student CPA Candidates
The new pathway provides students with the opportunity to save time and tuition costs by avoiding the extra credit hours or master’s degree requirements. The “150-credit-hour rule” was seen as a barrier to entering the profession. The new pathway reduces the reliance on that rule—or, at least, provides an alternative.
However, the new pathway has not yet been adopted by all 50 states. The ability to qualify for CPA licensure under the new pathway (after completing 120 hours of education) may influence a potential accounting student’s decisions regarding what school they attend and where they plan to practice.
Impact on the Accounting Profession
In a May 14, 2025, media release regarding the updated model law, the AICPA and NASBA said that the new pathway revisions “maintain public protection while providing added flexibility and options for CPA candidates.” More candidates may qualify under the new optional pathway and, consequently, this could increase the number of licensed CPAs, thereby helping to address the talent shortages in public accounting and related areas.
As previously noted, individual states will need to formally enact legislation and/or adopt rules, which may lead to uneven adoption.[6] Licensure rules (i.e., education, experience) may differ state-to-state for the foreseeable future. Complications may arise for firms or individuals who practice across state lines, although the mobility and portability of credentials with the shift to individual-based practice privilege should eventually make cross-border practice easier for CPAs and increase market flexibility.
Concerns Regarding the New Pathway
There are some who have expressed concern that the addition of the new pathway may negatively impact CPA exam pass rates. A look at the impact of a previous change may shed light on this concern. If we look at New York’s change to the 150-credit requirement in 2010 and compare the pass rates before and after the additional education was required, we see that pass rates have stayed in a similar range (mid-40% to mid-50%).[7]
One should be cautious, however, in comparing the numbers for a variety of reasons:
- NASBA does not provide exact yearly pass rate percentages for individual jurisdictions freely online—but New York does tend to follow the national trend, given its large candidate population.[8]
- Each state approved the change to the 150-credit requirement at different times.[9]
- Post-2023, the format and sections for the CPA exam changed (per the CPA Evolution initiative).
Summary
The new UAA changes mark a pivotal moment that will reshape both short-term operations and long-term strategy across the accounting sector. While the transition may present challenges—from compliance adjustments to shifts in organizational culture—it also creates opportunities, particularly for organizations that are willing to use these reforms as a catalyst for improvement. Stakeholders who proactively engage with these changes and adapt their practices accordingly will be best positioned not only to navigate the transition successfully, but to thrive in the evolving landscape the UAA reforms are designed to create.
DOI: 10.67283/9D63C099
[1] The Uniform Accountancy Act is not, as the name might suggest, a law passed by a legislative body, but rather a model licensing law. First published in 1984, it “provides state legislatures and Boards of Accountancy with a national model that can be adopted as is or adapted to meet the needs of each individual jurisdiction.” NASBA, “The Uniform Accountancy Act,” accessed March 25, 2026, https://nasba.org/blog/2025/02/26/the-uniform-accountancy-act/.
[2] Dina Barabash, “NASBA and AICPA Publish Ninth Edition of the Uniform Accountancy Act (UAA),” NASBA, July 22, 2025,
https://nasba.org/blog/2025/07/22/nasba-and-aicpa-publish-ninth-edition-of-the-uniform-accountancy-act-uaa.
[3] Noëlle Liger-Burton, “New CPA Licensure Pathways and CPA Mobility” (blog), NASBA, December 23, 2025, https://nasba.org/blog/2025/12/23/new-cpa-licensure-pathways-and-cpa-mobility/.
[4] NASBA, “New Pathways to Licensure Are Being Adopted Across the Country,” updated March 20, 2026, https://nasba.org/blog/2025/07/01/new-licensure-pathways/.
[5] AICPA & CIMA, “Exposure draft: Proposed ‘CPA Competency-Based Experience Pathway,’” September 12, 2024, https://www.aicpa-cima.com/certifications/download/exposure-draft-proposed-cpa-competency-based-experience-pathway?.
[6] Bryan Strickland, “AICPA, NASBA approve new CPA licensure path,” Journal of Accountancy, May 14, 2025, https://www.journalofaccountancy.com/news/2025/may/aicpa-nasba-approve-new-cpa-licensure-path/.
[7] NASBA, “CPA Exam Performance: All Jurisdictions, 2010,” accessed March 25, 2026, https://nasba.org/files/2012/03/2010-Overall.pdf?.
[8] NASBA, “State Board Report,” Spring 2023, https://nasba.org/wp-content/uploads/2023/05/NASBA-SBR-Spring-Q2-2023_Final.pdf?.
[9] Frank Stephenson and Brian Meehan, “Reducing a Barrier to Entry: The 120/150 State Licensing Rule” (working paper), The Center for Growth and Opportunity, January 7, 2021, https://www.thecgo.org/research/reducing-a-barrier-to-entry-the-120-150-cpa-licensing-rule/?.
