California court strikes down Diwali state holiday law, citing Establishment Clause; ruling leaves law on hold as appeals weigh
Atul ShahArchana VenkatesanAsh KalraGavin NewsomStephen AcquistoPaul ScottFederation of Jain Associations in North AmericaHindu American FoundationUniversity of California, DavisSan Francisco Taxpayers AssociationCalifornia Department of Justice

California court strikes down Diwali state holiday law, citing Establishment Clause; ruling leaves law on hold as appeals weigh

A California court has struck down Assembly Bill 268, which designated Diwali as a state holiday, citing violations of the Establishment Clause. The ruling halts the law's implementation, leaving public schools and state employee policies in limbo as appeals are considered, raising concerns among advocates and lawmakers.

Firstpost Firstpost+1 source6 August 2026 · 08:27 UTC
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California's Assembly Bill 268, which recognized Diwali as a state holiday, was struck down by Superior Court Judge Stephen Acquisto, who ruled it violated the Establishment Clause. The law, signed by Governor Gavin Newsom, aimed to accommodate California's growing Indian American population, now nearing one million.3

The court found that AB 268 provided preferential treatment to Diwali based on its religious significance without sufficient secular justification. “The Court finds that AB 268 violates several provisions of the federal and state constitutions by giving Diwali special treatment expressly based on its religious importance without any significant secular considerations,” Acquisto stated.

The ruling leaves public school districts and community colleges in a state of uncertainty regarding their academic calendars, as they had adjusted schedules to accommodate the holiday. Legal experts noted that newer legislative recognitions of religious festivals face stricter scrutiny compared to long-standing holidays like Christmas.7

The San Francisco Taxpayers Association, which filed the challenge, estimated the law could cost up to $68.8 million in administrative expenses. “If you’re not of that religion... that would suggest that Diwali is somehow getting better standing in our community and with the state government; that’s constitutionally problematic,” said petition lawyer Paul Scott.2

As lawmakers consider appealing the decision or revising the legislation, advocates argue that the law's intent was to allow celebration without penalties, emphasizing the cultural significance of Diwali in California.

The controversy highlights the ongoing debate over how non-Western cultural and religious traditions are recognized in American public life, with Asian American legislative caucuses evaluating next steps.5

Key Insight
“The San Francisco Taxpayers Association, which filed the challenge, estimated the law could cost up to $68.8 million in administrative expenses. The Hindu American Foundation argued the court prioritized textual phrasing over the law's civil purpose of accommodation, not endorsement.”
CuriousCats studied:
1
FirstpostFirstpost
“United States Superior Court Judge Stephen Acquisto struck down key provisions of Assembly Bill 268 (AB 268) — the legislation that designated Diwali as an official state holiday — ruling that the law violates the Establishment Clause provisions of both the US Federal and California State Constitutions.”
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“The controversy began after California Governor Gavin Newsom signed legislation last year making Diwali the state's 12th recognised holiday.”
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