Update: The House of Representatives came to a last minute deal to keep the government open through mid-March. The bill also includes a one year extension of the Farm Bill, $100 billion in disaster aid, and $30 billion in aid for farmers. The legislation, which passed with a bipartisan vote of 366-34, still needs to pass the Senate, but it could be approved before the midnight deadline. Even if the legislation isn’t signed before the deadline, the Brewers Association does not anticipate any major impacts on small and independent brewers.

On December 19, the House of Representatives failed to pass a continuing resolution (CR) that would have funded the government through March of 2025. It included language to raise the debt ceiling, a key priority for the incoming administration. The legislation, which needed two-thirds of the House to pass, fell short with a vote of 174-235. The CR that passed in September only funded the government through December 20, so the chances of a government shutdown are high.

As we have warned in the past, any length of shutdown will impact “non-essential” operations at the Alcohol and Tobacco Tax and Trade Bureau (TTB). Based on past experience when shutdowns have actually occurred, the TTB will not review or approve labels, formulas, or brewers notices until the government reopens. And, for some time after reopening, longer approval times will result from the larger than normal backlog of applications.

Given the current uncertainty, breweries can prepare by submitting any upcoming approval requests or applications as soon as possible to avoid longer wait times on the other end of any shutdown. Additionally, if you are scheduled to pay federal excise taxes or to file a brewer’s report of operations during the shutdown you must still pay and file. If a shutdown occurs, it could also impact businesses who have applied for Small Business Administration loans if the loan processors are deemed non-essential employees.

A government shutdown impacts a broad range of government agencies and services. The issues mentioned above are a few of the ways that a brewery could be impacted by a shutdown.

There is still time for legislators to try and avert a government shutdown. They could try to vote on the same legislation again or hold a vote on bipartisan package that the incoming administration opposed. There is also the option of passing a short-term CR to give the House and Senate more time to negotiate.

The Brewers Association will continue to monitor the situation and provide information as it becomes available.