Diwali, the Hindu “Festival of Lights,” is one of the most celebrated festivals among Indian-American communities. Although 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 observation 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 to recognize Diwali, allowing students and state employees to celebrate without penalty. Which US states officially recognize Diwali? Several states have declared Diwali as an official state or school holiday: 1. California (as of 2026) California has become the third US state to designate Diwali as an official state holiday. Governor Gavin Newsom signed Assembly Bill 268 (AB 268) into law in October 2024. The law, effective Jan. 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. Although schools and offices are not required to close, government employees can take the day off with pay. 3. Connecticut (2025) Connecticut has 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, more than a million students and teachers took a day off for Diwali. 5. New Jersey and Texas Several school districts in New Jersey (such as Edison and Jersey City) and Texas observe Diwali with school holidays or excused absences. Diwali 2025 Dates in the USA In 2025, Diwali and its related celebrations will be observed on these dates: Dhanteras: October 18 Choti Diwali: October 19 Main Diwali Day: October 20 Govardhan Puja: October 21 Bhai Dooj: October 22 The most important Diwali day on Monday (502 to 2000). The Lakshmi Puja Muhurat in New York will take place from 19:17 to 20:45 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, although some companies with large Indian workforces may offer flexible schedules or cultural celebrations.
Is Diwali a holiday in the United States? Here’s what you need to know
