As the third US state to formally declare Diwali a state holiday, California has achieved a major milestone for the Indian diaspora.

California has accomplished a significant milestone for the Indian diaspora by becoming the third US state to officially proclaim Diwali a state holiday.

Assemblyman Ash Kalra's measure to declare Diwali a state holiday was signed by California Governor Gavin Newsom on Tuesday.

The bill, AB 268, to declare Diwali a state holiday in California, was approved by both houses of the legislature in September and was pending Newsom's final decision.

Making Diwali a state holiday will elevate its message to the hundreds of thousands of Californians who celebrate and help promote it to many throughout our diverse state, Kalra had stated last month. California is home to the largest number of Indian Americans.

"The message of goodwill, peace, and a common sense of renewal unites communities on Diwali." Diwali and its diversity should be celebrated in California, not shrouded in secrecy, he continued.

The first state to formally declare Diwali as a state holiday was Pennsylvania in October 2024; Connecticut did so this year. Diwali has been proclaimed a public school holiday in New York City.

California's announcement to declare Diwali a state holiday was warmly received by prominent diaspora organisations and community leaders.

Nonprofit organisation Indiaspora said that with California, the most populous state in the nation, officially recognising Diwali, “Indian Americans celebrate a major milestone in the ongoing journey toward greater cultural inclusion and visibility. This recognition reflects not just the vibrancy of Diwali, but the enduring impact of the Indian American community across the United States.”

"This historic decision honours generations of Indian Americans who have contributed to California's growth and success," said Indiaspora Founder and Chairman MR Rangaswami in a statement.

“Governor Newsom’s leadership reflects the inclusive spirit our nation needs today. As he thanked Kalra and Assembly member Dr. Darshana Patel, the bill's co-authors, Rangaswami stated, "The recognition of Diwali as a state holiday affirms that diversity is truly our strength."

A "powerful recognition of the community's rich cultural heritage and longstanding contributions to the Golden State," Indiaspora hailed the "landmark legislation" as a "historic" occasion for Indian-Americans, particularly in California.

This is a time of great pride and happiness for the more than a million Indian Americans who live in California. According to the organisation, Indian Americans have played a significant role in creating California's dynamic and varied landscape by boosting the state's economy, serving in government, enhancing the arts, sciences, and civic life, and improving communities all throughout the state. California has also embraced the community.

The statement stated that the declaration of Diwali as a state holiday demonstrates that Indian Americans are not merely characters in California's history, but are an integral component of the state's identity.

The first time schools were formally closed for the festival on November 1, 2024, New York City took a "groundbreaking" step by requiring public school closures for Diwali, according to Indiaspora. Outside of New York City, a number of school districts in New York State will also declare Diwali a holiday.

Ajay Bhutoria, a well-known Silicon Valley businessman, philanthropist, and former Biden advisor, called the news a "radiant milestone" in California's progress towards genuine tolerance and cultural celebration.

For the nearly one million South Asians who live in California and make significant contributions to its innovation, economy, and spirit, "Diwali, our beloved Festival of Lights, embodies the eternal victory of hope over hardship, unity over division, and knowledge over ignorance—a message that resonates deeply," Bhutoria said.

This honour is more than just a holiday, he continued. It's a potent testament to the Indian diaspora's lasting influence in the Golden State. “Our community has woven threads of resilience and diversity into the fabric of American excellence, from healthcare heroes in Southern California to tech trailblazers in Silicon Valley,” Bhutoria continued.

The law guarantees that families can fully embrace customs like lighting Diyas, creating Rangoli, and sharing tales of rebirth—without the burden of work or deadlines—by providing state employees with paid time off and enabling schools to commemorate this holy day, he said.

"Your advocacy has not only brightened Diwali for generations but also inspired a nation to celebrate our shared light," said Bhutoria, who also thanked Newsom, Kalra, and Patel.