A court in California has struck down parts of a landmark law that formally recognised Diwali as a state holiday, less than a year after the legislation came into effect.
According to the Hindu American Foundation (HAF), the ruling was more about the wording made in the law to describe the religious significance of Diwali than the practical provisions that made the festival a state holiday.
California officially recognised Diwali as a state holiday in October 2025 after Governor Gavin Newsom signed legislation introduced by Assembly member Ash Kalra. This made California the third US state to formally recognise the festival as a state holiday after Pennsylvania and Connecticut.
The legislation did not impose Diwali as a mandatory paid holiday for all workers in California. It allowed eligible state employees to take paid leave to celebrate the festival. The law also gave public schools and community colleges the option to close for Diwali.
Hindu-American groups, on the other hand, seemed to be disappointed by the court's decision and considered that the legislation was a necessary acknowledgment of the community’s cultural and religious traditions.
🚨 Breaking| A California judge has overturned the state’s Diwali holiday law.
— Hindu American Foundation (@HinduAmerican) July 23, 2026
Last October, Hindu Americans celebrated a historic milestone when California recognized Diwali as an official state holiday, a meaningful step toward acknowledging the traditions and contributions of… pic.twitter.com/rA5j30v2vk
The Hindu American Foundation called the ruling a blow to efforts to acknowledge California’s religious and cultural diversity. The organisation said in a post on X that it was monitoring the lawsuit and would continue to support Hindu Americans in the state.
The organisation said it would also work to protect Hindu communities’ right to celebrate festivals and holidays that are of cultural and religious value and to celebrate festivals like this one.
Diwali, commonly known as the Festival of Lights, is one of the most celebrated festivals of Hindus all over the world. The festival is also celebrated by followers of Jainism, Sikhism and some Buddhist communities, with traditions and meanings differing from one community to another.
The festival is celebrated with prayers, lighting of lamps, family gatherings and cultural events. Millions of people in India and around the world celebrate Diwali every year.
California’s recognition of Diwali as a state holiday had been widely hailed as a watershed. It came even though the state is home to the largest number of Indian-Americans in the United States.
The ruling now raises questions about the future of the legislation as well as what is the exact legal language used to describe religious observances in state laws.
And the Hindu American Foundation said it would continue to monitor the legal process. More developments could determine whether the disputed provisions are amended, appealed or otherwise revisited by the courts.
Hindu Americans in California say the case is part of a larger debate on cultural recognition, religious freedom and state governments’ recognition of the traditions of various communities.
While practical arrangements related to Diwali observance are also present in the debate, the legal challenge has forced the government to reconsider how festivals are described in government legislation. The case will be studied through the legal process.
