Key Takeaways

  • Vermont Governor Phil Scott signed H.588 on Monday, adding an alternative path to CPA licensure that no longer requires 150 college credit hours (typically equivalent to five years of study), the governor's office confirmed in a press release.
  • The move aligns the state with more than 40 others that have passed so-called "CPA Pathway" laws or modified certification rules, as part of a broader licensure reform.
  • The new rule takes effect immediately, and Sadie Fischesser, executive director of the Vermont Society of Certified Public Accountants, said, "It was fast," she told CFO Dive. "It really keeps us competitive with other states, and it's designed to avoid creating too many Vermont-specific hurdles."

Deep Dive

According to Rob Pavyletz, an accounting professor at the University of Richmond, about 42 states and Puerto Rico have now formally enacted new CPA Pathway laws. Pavyletz is closely tracking changes in CPA licensure laws.

Pavyletz expects several remaining states to push similar reforms this year. "Michigan, Massachusetts, and the District of Columbia are certainly still in play for 2026," he said in an email Wednesday. "Given that neighboring states have all passed similar measures, I see no reason these proposals would stall."

Most recently, Rhode Island's CPA Pathway bill passed on Tuesday and is awaiting Governor Dan McKee's signature, Pavyletz said. On June 2, Louisiana Governor Jeff Landry also signed CPA legislation (HB 548), setting new CPA rules, with the change effective August 1, according to the state legislature's website.

Missouri's legislation (SB 1233) has passed and is still awaiting Governor Mike Kehoe's signature, a spokesperson for the governor said Wednesday.

By substituting an additional year of work experience, the current model typically requires candidates to complete a bachelor's degree or 120 credit hours and have two years of professional experience, while passing the CPA exam.

This initiative, called "Bachelor's Plus Two," has gained momentum since early last year, stemming from the accounting industry's attempt to ease licensure education requirements in response to talent shortages.

Although some accounting firm layoffs and the rise of automation and artificial intelligence suggest the labor issue may be easing, Fischesser noted that Vermont's talent shortage remains severe, and the new rule is still necessary.

"The shortage in Vermont is very real," she said. "Our population is shrinking, and a significant number of members retire each year."

She said the overall number of CPAs in this small state is on a downward trend. In fiscal year 2025, Vermont had 1,200 CPAs, about 50 more than the previous year, but well below the active peak of around 1,400 in 2019.

Compounding the issue is the outflow of young professionals and a reduction in the number of accounting programs available to students, she added.

For example, Champlain College in Burlington, Vermont, began phasing out its accounting program in 2024 due to declining enrollment, as reported by VTDigger in July 2025.

To track CPA licensure changes, visit CFO Dive's related tracker page.