This article was originally published on Feb. 20, 2025. It was most recently updated on March 11, 2025.
Update: On Tuesday March 11, 2025 House Republicans passed a continuing resolution that would fund the government through September 30, the end of the fiscal year. The bill passed mostly along bipartisan lines 217-213, with one Democrat voting with the Republican majority. The bill now heads to the Senate where it will need bipartisan support of 60 senators to avoid a filibuster before a final vote. Senate Democrats have not stated whether they will support the legislation, though members of their party have drafted a shorter one-month extension. The Senate has until midnight on March 14 to pass the legislation, or face a government shutdown.
Remember at the end of 2023 when Congress kicked the proverbial can on funding the federal government to the next year? Well, the deadline is approaching. Congress has until March 14, 2025 to pass a continuing resolution or legislation that will fully fund the government through September 30, 2025. To date, negotiations have not been going well. Republican leadership, who control both the House and Senate in the 119th Congress started with aggressive goals, but internal discussions have not been going as smoothly as they would have hoped.
The most likely scenario is that a continuing resolution is passed, extending the deadline again. But there have been rumblings that if Republicans can’t come to an agreement in their own party, a government shutdown could occur. In the past Democrats have stepped in to ensure the legislation passed, but if Republicans are unable to secure enough votes from their members to keep the government funded, they shouldn’t rely on Democrats to save them.
Why Should Brewers Care?
If there is a government shutdown small producers will be impacted by a loss of “non-essential” staff at government agencies. The Alcohol and Tobacco Tax and Trade Bureau (TTB) will lose personnel that handle label and formula approvals, as well as those who issue brewers notices and other types of permits. Collection of federal excise taxes will continue. If you are starting or expanding your brewery and have applied for a small business loan your bank might not be able to get approval on a Small Business Administration loan.
What Can Brewers Do?
“Knowledge is power.” “An ounce of prevention is worth a pound of cure.” “Preparation is the key to success.” Pick whichever quote works for you and start submitting items you need the TTB to address sooner than later. The standard turnaround time for label and formula approvals is 15 days. Though, as of this post, the malt beverage approval process for labels was around one day and formulas five days. Submitting these applications early could save you some pain if a government shutdown does occur.
If you are working with any other government agencies, reach out to your point of contact and ask if they have a shutdown plan or if your business with them will be impacted by a shutdown. Then, with the peace of mind you gained, you’ll only need to worry about tariffs, inflation, congress failing to raise the debt ceiling, etc.
If shutdowns and other federal legislative issues matter to you, register for the 2025 Hill Climb in July in Washington, D.C., and take action on the issues that impact your brewery.
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