Thousands of people turned out for Rancho Cordova's fourth annual Diwali celebration at Stone Creek Park on Oct. 25, dancing, eating, and watching fireworks under a law that, for now, cannot do what it was designed to do. California's Assembly Bill 268 was supposed to let state workers and public schools formally observe the Hindu Festival of Lights starting this year, but a court challenge has frozen that plan just as Diwali season arrives across the state.
A Festival That Went On Regardless
More than 2,500 attendees filled Stone Creek Park for the free event, according to organizer Bhaskar Vempati, as reported by the Sacramento Bee. The celebration was put on by the city of Rancho Cordova in partnership with the Suvidha International Foundation, and nearly 40 food, business and nonprofit vendors lined the park selling goods and treats, according to the Rancho Cordova Independent. Traditional Indian dancers performed and children's activities ran throughout the day before the night closed out with a fireworks show.
U.S. Rep. Kevin Kiley, I-Rocklin, showed up to support the community, the Bee's report noted. Vempati, who organized the event, said the ongoing legal fight over the state holiday law did not affect the festival itself. He added that he appreciates California's official recognition of Diwali as a powerful message that the culture is valued and that the state embraces community diversity, and said he still hopes Diwali will someday become one of California's official holidays.
How a Bipartisan Bill Ended Up in Court
Assemblymembers Ash Kalra and Darshana Patel introduced AB 268, also known as the Diwali Holiday Act, in early 2025. The bill received bipartisan support in both legislative chambers before Gov. Gavin Newsom signed it into law in October 2025. Under the law, state workers could choose to observe Diwali as a paid holiday in place of a personal holiday, and public schools could close for the day with school board agreement, hosting educational activities about Diwali on the holiday or on another day if they were closed.
Accounts of what happened next diverge. The Bee's reporting states that California recognized Diwali as a state holiday starting in January 2026. But according to the Los Angeles Times, a Sacramento judge ruled in favor of a taxpayers group's petition, effectively blocking the state from adding the Diwali holiday. The San Francisco Taxpayers Association had filed its initial complaint in Sacramento Superior Court in December 2025, suing the governor's office and claiming AB 268 violates parts of the California and U.S. Constitutions by giving special recognition, preference and aid to Diwali observers and encouraging sectarian instruction.
The Judge's Reasoning and the State's Response
California's Attorney General's Office had argued the association had not proven constitutional violations or irreparable taxpayer harm. Judge Stephen Acquisto ruled that the state had not sufficiently demonstrated a significant secular purpose for observing Diwali at the state level, writing that the law and its legislative history did not indicate secular considerations for the holiday. Following the ruling, California withdrew the option for employees and schools to observe Diwali, and legal challenges have halted enforcement of the law altogether.
The governor's office has appealed the decision, and litigation remains pending. Had the law taken full effect, California would have become the third state to officially recognize Diwali, following Pennsylvania and Connecticut, per the Times. Los Angeles County, notably, has recognized the holiday on its own since 2022, a recognition that operates separately from the contested statewide law.
More Celebrations Planned Despite the Freeze
Assemblymembers Kalra and Patel still plan to host a Diwali celebration at the California State Capitol, organized in partnership with the Association of Indo Americans and the Federation of Indian Associations of San Diego. The free event is scheduled for the West Steps of the Capitol at 10th Street and Capitol Mall from 2 to 5 p.m., and is set to include cultural performances, a diya lighting ceremony, Indian food and other activities.
Diwali itself, observed by more than a billion people of various faiths across India, South Asia and the global diaspora, falls on Sunday, Nov. 8, this year. For now, the legal fight over AB 268 leaves California's recognition of the holiday in limbo even as communities from Rancho Cordova to the Capitol keep marking the Festival of Lights on their own terms.
