The Cullen-Harrison Act took effect at midnight, April 7, 1933, permitting the sale of 3.2% ABV beer.

The 18th Amendment which imposed Prohibition never defined "intoxicating liquors," so some members of Congress assumed it only applied to distilled spirits, not to beer and wine. But it applied to all alcoholic beverages.

In 1932, in the depths of the Great Depression, the Democratic Party supported repealing the 18th Amendment, and modifying the Volstead Act which defined "intoxicating liquor" as any product with an ABV above 0.5%. Republicans didn't support repealing the Amendment, but did support allowing individual states to legislate the issue themselves.

President Roosevelt ran on Repeal. After a bill to fully repeal the 18th Amendment failed, Rep. James Collier drafted a bill legalizing and taxing beer with an ABV of less than 2.75%. Beer producers lobbied to increase the content to 3.2%, saying they could create 300,000 jobs and $400 million in taxes in 1933. That effort succeeded. Upon signing the bill on March 22, President Roosevelt reportedly said, "I think this would be a good time for a beer." The law took effect April 7, 1933, which is known today as National Beer Day.

At a minute past midnight, the Abner-Drury Brewery sent a guarded truck to the White House with two cases for Roosevelt. When it arrived, he was asleep. The Marine sentry opened a bottle and was photographed drinking it. The next day, Roosevelt sent the remainder to the National Press Club.

The end of Prohibition for beer – even if it was only with weak beer – turned out to be a crucial first step toward ending the Great Depression: Hundreds of breweries, bars, and taverns could reopen and expand again, hiring workers and buying new equipment, while restaurants could sell alcohol again.

In a radio address, August A. Busch anticipated the effect the end of Prohibition would have on the country.

In the four months that followed, manufacturing grew by 78%, automobile and heavy equipment sales by almost 200%, the stock market 71%, and about 4 million people found employment, with approximately 500,000 more jobs being created in related industries.

Prohibition officially ended on Dec. 5, 1933, with the passage of the 21st Amendment which legalized the manufacture, sale and possession of beer, wine and distilled spirits and the three-tier system that forms the backbone of the U.S. alcohol beverage business.