President Bush's staff refused to talk about the incident, with White House spokesman Scott McLellan commenting, "It's a family matter".
Nineteen-year-old Jenna Bush was drinking beer in a popular area of the Texas capital, Austin, when she was spotted by a police patrol.
Texas law forbids the drinking of alcohol for those under 21-years-old.
Jenna Bush, who was with a friend at the time, was issued with a citation, which means she will have to perform community service or pay a fine.
The offence happened in the early hours of Friday morning. Assistant Police Chief Mike McDonald of the Texas police said Jenna Bush did not appear to be drunk.
Two secret service agents protecting her were reported to be stationed outside the bar at the time.
Family matter
"Both girls were very cooperative, as were the Secret Service,", Officer McDonald said. "[The agents] didn't interfere in any way."
President Bush's staff refused to talk about the incident, with White House spokesman Scott McLellan commenting, "It's a family matter".
Ms Bush and her twin sister Barbara graduated from high school last May. Jenna is now a student at the University of Texas in Austin.
She is due to appear in court on 2 May. Under the terms of the citation, she will either pay a $200 fine or perform community service.
Jenna's father had a reputation as a hard drinking party-goer during his university days when he was a member of a fraternity known as the Skull and Bones.
But in 1986 Mr Bush appeared to go through a religious awakening at the time of his 40th birthday.
Waking with a hangover, he decided to quit drinking, found God and transformed himself into a man seeking high office.