California is set to officially recognise Diwali as a state holiday. On Monday, October 6, 2025, Governor Gavin Newsom signed Assembly Bill 268 (AB 268) into law, designating the Hindu festival of lights as a statewide holiday beginning in 2026. The festival, also known as Deepavali, is celebrated by Hindus, Sikhs, Jains, and Buddhists across the globe, and marks the triumph of light over darkness, and good over evil. Families gather to light candles and lamps, exchange greetings, and reflect on the values of life and community.
Will there be a Diwali holiday in 2025?
Despite the law being passed, Diwali will not yet be a state-recognised holiday in 2025. AB 268 goes into effect on January 1, 2026, meaning that while the festival falls on Monday, October 20, 2025, state offices, schools, and universities will remain open. Public institutions may still observe the festival informally, but there is no statewide mandate for closures this year.
What the law means for schools and employees
Under AB 268, state employees may take the day off with pay, similar to Juneteenth, while public schools and community colleges are permitted to close if local school boards and employee unions approve. Courts, however, are excluded from this holiday. The law also encourages schools to recognise and celebrate the meaning and importance of Diwali.
Diwali’s significance
Diwali remains one of the most significant festivals in Hindu Dharma traditions, celebrated by more than a billion people worldwide. The designation in California reflects the growing recognition of Indian American and South Asian American communities and their cultural contributions. Beginning in 2026, state employees and schools will be able to formally observe the day, offering both a pause from regular routines and a moment to honour the values that the festival embodies.
