Potential Government Shutdown in March
We’ve heard this story before, and according to the Brewers Association, we’re likely to hear it again.
Do you remember at the end of 2023 when Congress postponed funding the federal government until the following year? Well, that deadline is fast approaching. Congress has until March 14, 2025, to either pass a continuing resolution or other legislation to fully fund the government through September 30, 2025. So far, negotiations have been rocky. Republican leadership, which controls both the House and Senate in the 119th Congress, set ambitious goals, but internal discussions have not gone as smoothly as expected.
The most likely outcome is a continuing resolution, extending the deadline once more. However, there are concerns that if Republicans fail to reach an agreement within their own party, a government shutdown could happen. In the past, Democrats have stepped in to help pass the necessary legislation, but if Republicans can’t secure enough votes from their own members to fund the government, they shouldn’t count on Democrats to bail them out.
Why Should Brewers Be Concerned?
A government shutdown could impact small producers due to the loss of “non-essential” staff at government agencies. For instance, the Alcohol and Tobacco Tax and Trade Bureau (TTB) would see a reduction in personnel handling label and formula approvals, as well as those issuing brewers’ notices and permits. While federal excise tax collection would continue, if you are starting or expanding a brewery and have applied for a small business loan, your bank might not be able to secure approval for a Small Business Administration loan during the shutdown.
What Can Brewers Do?
“Knowledge is power.” “An ounce of prevention is worth a pound of cure.” “Preparation is the key to success.” Choose whichever quote resonates most with you, and start submitting any items you need the TTB to address as soon as possible. The standard turnaround time for label and formula approvals is typically 15 days, but as of now, the approval process for malt beverage labels is about one day, and formulas take around five days. By submitting applications early, you could avoid delays if a government shutdown occurs.
If you’re working with any other government agencies, reach out to your point of contact and ask whether they have a shutdown plan in place, or if your business with them might be affected. With this information in hand, you’ll have some peace of mind and be able to focus on other issues like tariffs, inflation, and Congress struggling with the debt ceiling.
If federal shutdowns and legislative matters are a concern for you, consider registering for the 2025 Hill Climb event in Washington, D.C., this July. It’s a great opportunity to take action on the issues that directly impact your brewery.
Attribution: Article Retrieved from Brewers Association, written By Katie Marisic .
Beer CPA – “We Give Craft Breweries More Freedom and Peace of Mind”
A Craft Brewery CPA Firm that’s Tech Savvy, Responsive, and Business Smart.
Editorial credit: Matthew Forero / Shutterstock.com