California has officially designated Diwali as a state holiday, making it the third state in the US to do so. Governor Gavin Newsom signed the bill, AB 268, on October 6, 2023, which will take effect on January 1, 2026. This law allows public schools and community colleges to close on Diwali, and state employees can take the day off with pay.

The bill was co-sponsored by Assemblymembers Darshana Patel and Ash Kalra, who expressed gratitude for the recognition of this important festival. Kalra stated, "Diwali brings communities together with the message of goodwill, peace, and shared sense of renewal. California should embrace Diwali and its diversity, not keep it hidden in darkness."

Diwali, celebrated by Hindus, Sikhs, Jains, and Buddhists, symbolizes the triumph of light over darkness. This year, the festival will be observed on October 21. The law acknowledges the cultural significance of Diwali, which is celebrated by a large Indian-American population in California, estimated to be nearly 20% of the nation's total.

California joins Pennsylvania and Connecticut in officially recognizing Diwali as a state holiday. Pennsylvania was the first to do so in 2024, followed by Connecticut in 2025. The growing recognition of Diwali across the United States highlights efforts to celebrate cultural diversity and the contributions of Asian American communities.

The Coalition of Hindus of North America welcomed the law as a historic step toward inclusion for Hindu Americans. They thanked Governor Newsom for his support, stating, "We thank Governor Gavin Newsom for recognizing this important festival and ushering in a new era of inclusion for Hindus in California."

In addition to the celebration of Diwali, Governor Newsom's administration has faced scrutiny over his veto of a bill aimed at banning caste discrimination in California. He explained that existing laws already prohibit discrimination based on various characteristics, including race and religion.

The recognition of Diwali as a state holiday is seen as a significant milestone for the Indian-American community, reflecting their contributions to California's cultural landscape. Nonprofit organization Indiaspora noted that this decision honors generations of Indian Americans who have played a vital role in the state's growth and success.