Washington, D.C. CPA Bill Passes Council, Sent to Mayor for Signature
The Council of the District of Columbia voted unanimously on Tuesday to advance a bill (26-494) that would create an alternative pathway to CPA licensure, aiming to lower barriers to entry and address the industry's talent decline. This pathway replaces the 150 college credit hour requirement with an additional year of professional experience, and similar reforms have already been implemented in about 44 states and Puerto Rico nationwide. The bill's next step is review by Mayor Muriel Bowser and Congress.
Core Dynamics
- The Washington, D.C. Council voted unanimously on Tuesdayto pass a bill (26-494), proposing an alternative path to becoming a Certified Public Accountant (CPA): applicants would need a bachelor's degree, two years of work experience, and to pass the CPA exam.
- The bill still requires review by D.C. Mayor Muriel Bowser, followed by congressional approval to become law. This move would align the District with most U.S. states, which have established a lower-cost third certification path to reverse the declining number of students entering the profession.
- Similar to other jurisdictions that have implemented new rules, the District's third path requires an additional year of professional experience in lieu of 150 college credit hours (typically equivalent to five years of higher education).
Deeper Dive
According to Robert Pawlewicz, chair of the accounting department at the University of Richmond's Robins School of Business, since early last year, about 44 U.S. states, excluding Puerto Rico, have enacted similar CPA licensure changes into law.
He expects Michigan and Massachusetts to pass their own CPA path legislation this year, with North Dakota, Florida, Maine, and Wyoming following by the end of next year.
"Overall, we've seen remarkable momentum for the 120-credit path (especially with the AICPA's involvement and the UAA revisions), and I don't see any factors hindering the last few states from following suit," Pawlewicz said in an email.
Although any law passed by the District of Columbia must undergo review by the mayor and subsequentlyCongress, Pawlewicz does not anticipate federal lawmakers will stall the bill, as voters in their states have largely completed this reform.
According to the legislation website and the mayor'sNovember letterto D.C. Council Chairman Phil Mendelson, the bill was introduced and supported by Mayor Bowser.
Bowser wrote in the letter: "The cost of education, particularly the cost of obtaining a master's degree, has become a barrier for some individuals aspiring to become licensed CPAs. Additionally, there has been a decline in the number of licensed CPAs nationwide, including in the District. This legislation will help address this issue."
A spokesperson for Bowser declined to comment on the bill's content beyond the mayor's letter.
Editor's note: To track CPA licensure changes, visit CFO Dive'srelated tracker page。