Diwali, the Hindu “Festival of Lights,” is one of the most celebrated festivals among Indian-American communities. While it’s not a federal holiday in the United States, several states and cities have officially recognized Diwali in recent years — allowing schools to close or employees to take the day off. The growing observance reflects America’s increasing cultural diversity and inclusion.
Is Diwali a Federal Holiday in the US?
No — Diwali is not a federal holiday in the United States. Federal offices, courts, and financial markets such as NYSE and Nasdaq remain open. However, many states and school districts have begun recognizing Diwali, allowing students and state employees to celebrate without penalty.
Which US states officially recognize Diwali?
Several states have declared Diwali an official state or school holiday:
1. California (from 2026)
California became the third US state to designate Diwali as an official state holiday.
Governor Gavin Newsom signed Assembly Bill 268 (AB 268) in October 2024.
The law, effective January 1, 2026, authorizes public schools and community colleges to close and allows state employees to take a paid day off.
Diwali is also recognized for its importance to Hindus, Sikhs, Jains, and Buddhists.
2. Pennsylvania (since 2024)
Pennsylvania became the first US state to declare Diwali an official state holiday in 2024.
While schools and offices are not required to close, state employees can take the day off with pay.
Connecticut added Diwali to its official state holiday list, joining Pennsylvania and California in recognizing the festival statewide.
4. New York (New York City)
In 2023, Governor Kathy Hochul signed a law making Diwali a public school holiday in New York City.
For the first time in 2024, over a million students and teachers observed a day off for Diwali.
Several school districts in New Jersey (like Edison and Jersey City) and Texas observe Diwali with school holidays or excused absences.
Diwali 2025 dates in the US
In 2025, Diwali and its related celebrations will be observed on these dates:
Main Diwali Day: October 20
Govardhan Puja: October 21
The main Diwali day falls on Monday (October 20, 2025). The Lakshmi Puja Muhurat in New York will take place from 7:17 PM to 8:45 PM local time.
Will businesses and stock markets close for Diwali?
No — Diwali is not a market or business holiday in the US. The New York Stock Exchange (NYSE) and Nasdaq will remain open. Federal and most private offices operate as usual, though some companies with large Indian workforces may offer flexible schedules or cultural observances.
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