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The Kentucky CPA Journal

Cover

Accounting Excluded From Proposed Federal “Professional Degree” Definition, Prompting Broad Advocacy Response

Issue 4
December 22, 2025

By Darlene Zibart, CPA

A recently leaked draft regulation from the U.S. Department of Education has triggered swift and coordinated opposition from the accounting profession, including the American Institute of CPAs, state CPA societies and a broad coalition of accounting and finance organizations. At issue is a proposed definition of “professional degree” that would exclude accounting programs, potentially limiting graduate student loan access for future CPAs and worsening an already strained talent pipeline.

The draft regulation would implement provisions of H.R. 1, known as the One Big Beautiful Bill Act, which establishes new federal loan caps for graduate students. Under the proposal, students enrolled in “professional degree” programs would be eligible for up to $50,000 per year in federal loans, with a lifetime cap of $200,000. All other graduate programs would be subject to significantly lower limits of $20,500 per year and $100,000 total.

While programs such as law and medicine would fall under the higher cap, accounting is not included in the Department of Education’s draft definition of a professional degree. That omission, according to leaders across the profession, fails to reflect the rigorous education, examination and licensure requirements CPAs must meet and risks discouraging students from entering a profession vital to economic stability and public trust.

The draft regulation came to light shortly before Thanksgiving, ahead of its formal release. Although not yet published in the Federal Register, the proposal immediately raised alarms among CPA societies and national organizations that have long advocated for policies supporting the accounting workforce.

Accounting is a state-licensed profession that typically requires education beyond a standard bachelor’s degree, successful completion of the Uniform CPA Examination, relevant professional experience and adherence to strict ethical standards. In many states, including Kentucky, candidates must complete 150 credit hours of postsecondary education, often necessitating graduate-level coursework.

By excluding accounting from the professional degree designation, critics argue, the Department of Education would effectively penalize students pursuing CPA licensure by limiting their access to affordable federal financing.

Response

In response, the AICPA and state CPA societies moved quickly to engage regulators and lawmakers. Shortly after news of the proposal emerged, the AICPA and state societies issued a joint press statement opposing “any proposal that fails to recognize accounting as a professional degree program.” That position was reinforced in a formal letter to the Department of Education, signed by the AICPA and CPA societies nationwide, including the Kentucky Society of CPAs.

AICPA President and CEO Mark Koziel echoed those concerns in a separate letter to U.S. Secretary of Education Linda McMahon, urging the department to revise the proposed rule to include accounting programs.

The advocacy effort expanded further when a coalition representing approximately 1.5 million accounting and finance professionals sent a letter to the Department of Education urging parity and warning of workforce and public-interest consequences.

Congress has also begun to weigh in, with three separate legislative proposals introduced addressing graduate loan caps and professional degree definitions. While none has yet gained bipartisan traction, the proposals reflect growing awareness of the issue.

What's next

The Department of Education is expected to publish the proposed regulation in the Federal Register early next year, likely in January, triggering a formal public comment period.

For Kentucky CPAs, the issue carries particular significance as firms and companies across the state continue to face talent shortages. Limiting access to graduate education financing could further discourage students from pursuing CPA licensure.

As the process unfolds, the Kentucky Society of CPAs will continue to monitor developments, advocate for the profession and keep members informed.

Questions or comments

If you have any questions, comments, or feedback, please feel free to reach out to KyCPA President & CEO, Darlene Zibart, at dzibart@kycpa.org or Government Affairs Director, Cash Cassady, at ccassady@kycpa.org. 

 

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