Blog
How Does the Government Shutdown Impact the Alcohol Industry?
Published: Oct 8, 2025
As the shutdown of the federal government hits the one-week mark, many in the alcohol industry are asking “does this impact my company?” The alcohol industry is not only regulated by state or local agencies. The federal government also regulates large portions of the industry via the U.S. Alcohol & Tobacco Tax and Trade Bureau (TTB). Most critically, almost all TTB operations are suspended during the shutdown. This includes the following:
- Permit applications and amendments (so opening a new business or modifying your existing business);
- Transfers in Bond (TIBs);
- Processing of Formulas;
- Processing of Certificates of Label Approval (COLAs); and
- Tax refunds and rebates.
This means that while industry members can still submit applications and amendments electronically, no review will occur and no approvals will be issued until after the government reopens. The longer the shutdown, the greater the backlog and delays once operations resume. This means you cannot open your new distillery, winery, or brewery and cannot grow your business and start selling new products until the dust settles, which could last at least a few weeks, if not a couple of months. Think about all of those applications the TTB staff will come back to when the government reopens.
To add insult to injury, tax payments and tax filings are still required to be made on time during the shutdown. So all the good things stop, while the bad things continue.
As Semisonic sings,
Closing time, one last call for alcohol
So, finish your whiskey or beer
Closing time, you don't have to go home
But you can't stay here
