Whether you’re a digital nomad dreaming of seeing clients from coast to coast, or a solo practice owner right here in Texas wondering what this means for your local business, I’ve got you covered. Let’s break it down—pros, cons, and what you need to know right now.
Badass Therapists Building Practices That Thrive #132: What is the Counseling Compact and Why It Matters for Your Therapy Practice
What Is the Counseling Compact?
Let’s start with the basics. Think about your counseling license like a driver’s license. You have permission to operate. Unlike a driver's license though, your counseling license only gives you permission to operate in the state that issued it. So if you’re licensed in Texas, you can’t just start seeing clients in Oklahoma or Florida without getting licensed there, too.
The Counseling Compact changes that. It’s a multi-state agreement that allows licensed professional counselors (LPCs) to practice across state lines without needing to get a license in each individual state. That means, if you’re eligible and your state has joined the compact, you could see clients in other compact states without jumping through a ton of regulatory hoops.
Sounds amazing, right? It is—but there are a few things you need to know first.
Is Texas Part of the Counseling Compact?
Now, for those of you Googling “counseling compact Texas,” here’s where things get interesting. As of May 1, 2025, Texas is not yet part of the Counseling Compact—but legislation is in the works.
If it passes during this legislative session, LPCs in Texas could soon be eligible to practice in other compact member states without applying for additional licenses. That’s a huge win for accessibility to care and for those of you looking to expand your businesses. But remember, our legislature only meets every other year—so if it doesn’t pass now, we’ll be waiting until 2027.
Am I Eligible for the Compact?
Before you get too excited and start planning your practice across all 50 states, let’s talk eligibility. To join the compact, you’ll need:
-
An active, unencumbered LPC license in your home state
-
A master’s degree with at least 60 graduate-level credits
-
A passing score on the National Counselor Examination (NCE)
-
A clean disciplinary record
Now, here’s the twist—many of us older licensees (yes, I’m talking to myself here) didn’t take the NCE. I took the Texas licensing exam back in the day, which was totally legit at the time.
The good news? If you were grandfathered in under a previous licensing system (like the old 36- or 48-hour master’s degree requirements), the state you’re licensed in can decide whether you’re eligible. So, in Texas, even if you didn’t take the NCE, you may still qualify once we join the compact.
How Would a Texas Counseling Compact Work?
Once Texas joins and everything’s operational, here’s what the process will likely look like:
-
You apply for a privilege to practice through the Counseling Compact Commission’s portal.
-
You’ll pay a fee, complete a background check, and possibly take a jurisprudence exam for each new state you want to practice in.
-
If approved, you’ll have the legal right to practice in all compact member states—via telehealth or in-person.
Just like with driving in different states, you’ll need to know each state’s laws around mandated reporting, scope of practice, and ethics. The compact doesn’t erase state-level rules—it just gives you easier access to practice across borders.
So, Is It All Good News?
Not necessarily. Here’s where I shift into “Kate the Dream-Killer” mode for just a second.
Sure, having access to more states sounds great. But if you're in a highly populated state like Texas, you already have access to millions of potential clients. You might be thinking that opening your doors to smaller states will expand your reach, but remember: your KPIs are what matter most. We’re talking:
-
More phone calls
-
Less phone tag
-
More booked first appointments
If you don’t have your ethical marketing practices dialed in, adding more states to your list won’t magically bring you more clients. In fact, it could make it harder to stay focused on your ideal client, your niche, and the community you’re already serving well.
The Flip Side: More Competition
Here’s another thing we need to prepare for. The compact works both ways.
That means therapists in other compact states can now start marketing to clients in your zip code. Maybe they’re from a saturated market in another state and are eyeing your community as the next hot spot. If you’re not already standing out with your marketing, messaging, and online presence, you could start seeing more competition in your area.
So What Should You Do?
Here’s my take: Stay ready. Whether you’re a seasoned group practice owner, a solo entrepreneur, or just starting out, the compact isn’t a silver bullet—but it can be a strategic tool.
If you’re planning to practice across state lines, get clear on:
-
Your eligibility
-
Your messaging (do clients in other states understand what makes you different?)
-
Your marketing foundation (SEO, website, niche clarity—yep, I said it)
And if you’re staying right here in Texas, don’t sleep on the competition. Use this time to up your game, streamline your systems, and keep your practice growing your way.
Final Thoughts
So, what is the Counseling Compact? It’s an exciting shift in the way we think about licensure, portability, and access to care. It’s also a wake-up call for every therapist looking to stay competitive, grow ethically, and build a practice that actually works.
Whether you’re all-in on multi-state telehealth or firmly rooted in your Texas community, knowledge is power—and now’s the time to start planning for what’s next.
Action Items:
- Join us for a FREE webinar hosted by Dr. Kathy Ybanez Llorente on everything you need to know about the counseling compact on May 14th! Click here to register!
- Mark your calendar for the Thursday 30 Live quick training at 9:30 CST over on the Texas Counselors Creating Badass Businesses Facebook page.