Diwali is not a federal public holiday in the United States, it holds significant cultural and religious importance. In some states, the festival has gained official recognition as a holiday. For example, which state in the USA has a Diwali holiday? Then, in Pennsylvania, Diwali was officially recognized as a holiday, sending a clear message of inclusion to the state's nearly 200,000 South Asian residents. This recognition acknowledges the festival's importance and role in fostering cultural diversity and unity.