As of October 1, 2025, the U.S. federal government has entered a shutdown, and this has direct implications for wine businesses that rely on federal agencies like the TTB and FDA. Below is a quick overview of what alcohol beverage companies should expect:
Impacts on TTB
- With the lapse in appropriations, TTB has suspended non-excepted operations.
- Key tasks that will not be processed during the shutdown include COLA approvals (Certificates of Label Approval), beverage and non-beverage formula reviews, permit applications, laboratory services, and processing of new permit-related requests.
- Some functions will continue as “excepted” under the TTB’s contingency plan — which may include processing tax returns with remittances, data security to avoid loss of in-process data, protection of federal property, and criminal enforcement.
- Even though industry members can still electronically submit new COLA, formula, or permit applications, these won’t be reviewed or approved until the TTB resumes full operations. This inevitably means that, the longer the federal government is shutdown, the greater the line will be for these applications to be processed.
- When operations restart, expect a backlog, possibly increased processing times, and the need to triage or withdraw duplicate or unnecessary filings to ease the volume.
- View TTB’s shutdown plan here.
Impacts on FDA
- The FDA’s contingency plans allow for continued operations in certain essential areas, particularly those addressing imminent threats to human life or public safety (e.g., food recalls, import entry screening, adverse event monitoring).
- Many routine inspections or compliance oversight activities will be suspended, unless they are “for cause” (e.g., in response to safety concerns).
- Because the FDA retains a large portion of its workforce under “exempt” or “excepted” status, many safety-critical operations will likely continue.
Effect on State Agencies
- Importantly, state alcohol or food authorities are generally not funded by the federal government, so their operations should not be directly affected by the federal shutdown.
- Thus, state-level permit applications, renewals, inspections, or compliance work can continue as usual, independent of TTB or FDA delays.
What Alcohol Beverage Companies Can Do Right Now
- Front-load your submissions while the shutdown is fresh — prepare any upcoming label, formula, or permit applications for current needs and submit them as the line will only grow as the shutdown progresses.
- Review pending files — make sure your permits, COLAs, and formulas are complete, accurate, and free of errors. Review TTB’s list of Allowable Revisions to Approved Labels to see if you can make a change to a previously approved label without needing to submit a new COLA application.
- Avoid submitting nonessential or speculative filings during the shutdown to prevent unnecessary backlog.
- Maintain compliance — even though agency reviews may pause, the regulatory obligations (labeling requirements, excise tax filings, operational reports, recordkeeping, etc.) continue.
- Plan for delays — build time cushions into your launch and market plans, recognizing that federal approvals may be significantly delayed once the shutdown ends.
- Monitor the agencies’ messages and resumption notices — once the shutdown ends, TTB and FDA will issue updates on timelines.
While federal agency delays may feel disruptive, this period is also an opportunity to get organized, refine compliance materials, and plan strategically for when operations resume. If you have questions about how the shutdown may affect your business or need guidance navigating next steps, please don’t hesitate to reach out to our firm for an initial consultation.
For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.
DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.
