Mark J. Cowan, Joshua J. Filzen & Troy A. Hyatt, 118 Tax Notes State 639 (Dec. 1, 2025):

When we last wrote about the pipeline problem (in late 2023), it was having a real impact from public accounting to government to private industry. We mentioned that the causes of the pipeline problem are manifold, including demographic trends, starting salaries, stereotypes, difficulty, the perceived lack of work-life balance in the profession, and the daunting prospect of taking the CPA exam. The impact of the 150-hour rule is marginal compared with these core factors. Yet it is the 150-hour rule that is being reformed.

Today it is unclear whether the pipeline problem is still with us. At best, the signs are inconclusive.

The CPA profession is rapidly distinguishing itself as the only learned profession actively reducing its educational requirements for licensure. The reduction efforts target what is known as the 150-hour rule, which requires CPA candidates to earn 30 academic credits in addition to a bachelor’s degree. Because candidates can earn the 30 credits in just about any subject (it need not be accounting), reformers view this as an unnecessary barrier to becoming a CPA and are successfully lobbying state legislatures to allow additional work experience in accounting (usually a year in addition to the one year currently required in most states) to substitute for the additional 30 academic credits. Many practicing CPAs, professional groups, and even accounting academics applaud this reform movement, believing it will cure or ameliorate the perceived shortage of accountants — the “pipeline problem.”

We are not among the cheerleaders.

As we have previously argued, reforms of the 150-hour rule, while well-intentioned, are shortsighted.