When Congress can’t get its act together and the federal government shutters, most people immediately think about national parks, paychecks for federal workers, or flight delays. But what about beer? Yep — a government shutdown can actually mess with the beer industry, and not in a small way.

At the heart of it all is the Alcohol and Tobacco Tax and Trade Bureau (TTB).

This little-known agency (at least for those not in the beer biz) has a key role: approving new beer labels, recipes, and permits for breweries. When the government shuts down, the TTB is basically closed for business. That means no new label approvals, no new formulas, and delays in permitting for breweries trying to open or expand.

For big breweries with a steady lineup, it’s more of a headache than a crisis. But for smaller craft breweries — especially those who thrive on seasonal releases or one-off specialty brews — a shutdown can derail production schedules. Imagine gearing up for a fall pumpkin ale or winter holiday stout only to find you can’t legally sell it because the label approval is stuck in limbo.

The last major shutdown in 2019 left thousands of applications sitting untouched at the TTB. Breweries had tanks full of beer they couldn’t release, while others saw taproom openings delayed because they couldn’t get operating permits. Some craft brewers took major hits even reporting financial losses in the tens of thousands just from waiting.

And since the US is locked into the three tier distribution system, distributors and retailers feel the ripple effect too. Without fresh releases hitting the market, the new beers slow. Just another blow to small breweries already struggling to stand out in an increasingly competitive craft beer landscape.

Of course, beer still flows during a shutdown — you can still walk into your favorite bar and order a cold beer. But behind the scenes, brewers are left crossing their fingers that Congress gets its act together before their new IPA goes stale in the tank.

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