Drinking song going around the States (8)
I believe the answer is:
carousal
'drinking' is the definition.
(a drunken feast)
'song going around the states' is the wordplay.
'song' becomes 'carol' (carol is a kind of song).
'going around' is an insertion indicator.
'the states' becomes 'usa' (I've seen this before).
'carol' enclosing 'usa' is 'CAROUSAL'.
(Other definitions for carousal that I've seen before include "Revels" , "Merry drinking party" , "Bacchanal" , "Merry drinking spree" , "Drunken party" .)