Accounting Groups Push Back After Education Department Draft Would Strip ‘Professional’ Label from Accounting Degrees

Who sent the letter, who it was for, and the core objection

A coalition led by the American Institute of CPAs (AICPA) has sent a formal letter to the U.S. Department of Education objecting to a recent draft regulation. The draft would remove accounting from a federal list of programs that can be called “professional degrees.”

The coalition — eight national accounting organizations in all — said the change is more than bureaucratic hair-splitting. In plain terms, they argue the move would create confusion for colleges, students and state licensing boards and could make it harder for people to become licensed accountants.

What the Education Department is proposing and why it matters

The draft rule from the Department of Education changes how some degrees are described in federal regulations. Right now, certain fields are listed as qualifying for a “professional degree” label. The draft would carve accounting out of that list.

That sounds minor, but the label matters because it connects to accreditation rules, financial aid definitions and, most importantly for accounting, state licensure pathways. The Department has issued the draft as part of its regular rulemaking process and will accept feedback before deciding whether to finalize the language. The timeline is typical of federal rulemaking — a public comment window followed by a period of review — so any final change would likely take months, not weeks.

How this could ripple through accounting programs and student paths to licensure

Practically, the draft could alter how colleges name and structure accounting degrees. Programs that now call themselves “professional” might have to change marketing, degree titles or course sequences to match a new federal definition. That creates extra work and expense for schools at a time when higher-education budgets are already tight.

More importantly, many state boards that license CPAs rely on degree names and course content to verify that an applicant meets education requirements. If the federal rule makes accounting a special case, states could face pressure to rewrite or reinterpret rules. That can make the path to a license longer or more uncertain for students who already spend extra time and money meeting education requirements.

For students, the immediate risks are confusion about whether their degree meets licensure rules, possible extra classes, and delayed entry into the workforce. For employers, this could shrink the short-term supply of newly licensed accountants, at a time when firms report steady demand for entry-level hires.

What the coalition actually argued in its letter

The letter, led by the AICPA and signed by seven other accounting organizations, pushed back hard on the Department’s reasoning. The coalition said the draft appears to misread existing statutes and would “undermine established educational and licensure practices” that protect the public and ensure consistent standards across states.

Members called the change unnecessary and disruptive. They argued it could force programs to retool curricula and could make it harder for students to predict whether their degree will meet a state board’s requirements. The letter urged the Department to reverse course and keep accounting within the federal definition of professional degrees so long-standing pathways to licensure remain clear.

What happens next in the rulemaking process

The Department will now consider public comments before deciding whether to revise or finalize the rule. That window is the best opportunity for schools, professional groups, state boards and students to make their views known.

After the comment period closes, the Education Department can change the draft, hold further consultations, or move forward. Any final rule would typically take effect months after publication, giving stakeholders time to adjust — but not without distraction or cost for programs forced to change.

Why this matters beyond colleges: credentialing and the workforce

This fight is part of a broader debate over how we recognize professional training. Across industries, employers and regulators are experimenting with competency-based credentials, microcredentials and new degree titles. The accounting coalition’s push shows how a single federal definition can affect big-picture questions: who qualifies to practice, how programs are built, and how students plan careers.

For the economy, the likely near-term effect is administrative pain rather than a market shock. It matters most to students and state boards directly involved in licensure. Longer term, if federal rules diverge from state expectations or academic practice, the result could be slower routes to licensure and a bumpier supply of qualified accountants — an outcome the coalition says everyone should want to avoid.

Sources

• prnewswire.com