For husband and wife couple David Harris and Megan Draheim, the idea of owning and operating their own distillery was 11 years in the making.
They painstakingly created new spirits, built a facility to produce their products in one location, and made sure all the rules were followed in a highly regulated industry.
There have been setbacks, such as the pandemic that closed bars and restaurants across the country and forced their bank to call in their loans. But just last month they opened Song Dog Farm Distillery on a rural hillside in Boyds, Maryland, next to rows of corn they plan to use to make whiskey.
But while they were working to build a customer base, they were dealt a blow they didn't expect: the federal government shutdown.
“This threatens our business and disappoints our customers,” Harris said. “After 11 years of construction, we want to satisfy people and show them the richness of local agriculture and seasonal produce.”
A big part of their launch plan was to take advantage of the holidays and attract new customers by releasing new and original cocktails and liqueurs.
“We really spent I spent so much time thinking about every detail of this project. And I hate to be here with my hands tied,” Draheim said.
But each of these drinks requires approval from the federal government. When distillers release new drinks, they must obtain a “Certificate of Label Approval” from the Alcohol and Tobacco Tax and Trade Bureau (TTB), which is closed due to the government shutdown. Alcoholic beverages with “flavors or colors” also require formula approval, according to the TTB.
The Alcohol and Tobacco Tax and Trade Bureau did not respond to a request for comment.
Right now, the bureau's website says new applications can be submitted “but will not be reviewed or processed” until the shutdown ends.
“Typically the wait time is three or five days. It's no big deal,” Harris said. “And at this point, no formula, no new label has been approved anywhere in the industry.”
And as the busy holiday season approaches, they're unable to expand their product line and are worried they'll lose sales.
“People will notice. They'll get tired of our very limited initial menu that we're stuck with until the government reopens,” Harris said.
They are not alone. Gabe Spencer, head distiller at Whistling Andy Distillery in Big Fork, Montana, is deeply concerned about the loss of business this coming holiday season.
“It’s stressful because … 30-35% of our revenue comes from Thanksgiving through Christmas,” he said. “During the Christmas season, our little village turns into a Christmas town, so there are a lot of people coming through the tasting room.”
Whistling Andy Distillery is awaiting approval for special releases for its 15th anniversary. Even if the government reopens next week and approves the label, it's unlikely it can be printed in time.
The distillery has suspended plans to hire additional sales staff to promote its products in Montana and out of state.
“We need more people on the ground and money coming in so we can bring in someone else to help grow our brand. I don't think I can do this, you know, without the revenue coming in… as much as we expected,” Spencer said.
Tom Leakes, owner of Cleveland Whiskey in Ohio, said the closure means he can't get the permits needed to make a chocolate-cream peanut butter liqueur intended to be added to warm winter drinks such as hot cocoa and Irish coffee.
“It really interferes with planning and hiring new people,” Leakes said. “There is a huge ripple effect from something as stupid as a government shutdown.”
President Donald Trump's tariffs have also increased the price of some Cleveland Whiskey bottles shipped from Canada, Leakes said. Exports of American spirits to Canada were 85% decline in the second quarter of 2025according to the Distilled Spirits Council of the United States, Canadians boycott many American goods in response to Trump's tariffs and proposals for the country to become the 51st state.
Asked what he would tell lawmakers on Capitol Hill, Leakes replied: “You need to get yourself together, sit in a room and not come out until you figure this out.”
Margie A.S. Lerman, CEO of American Craft Spirits, likened the cumulative effect of tariffs and permitting delays on her industry to a boxer in a battle royal taking punches from multiple fighters at once.
“They're in the center of the ring. Before you could throw one punch; now they're there with multiple boxers and they're in the center,” she said.
It also comes as the industry grapples with declining sales as fewer Americans drink alcohol. According to Gallup poll A study in July found that 54% of Americans say they drink beer, wine or spirits, the lowest percentage in the survey's 90-year history.
For Harris at Song Dog Farm, uncertainty about when the shutdown will end compounds the problem.
“Companies like ours need some certainty, some sort of road map of what needs to happen,” he said.
