December 26, 2025: Federal Holiday Status and National Impact
President Donald Trump issued an executive order on December 18, 2025, designating both Christmas Eve and December 26 as federal holidays for this year. This unprecedented move has created a five-day holiday break for many federal employees but has also generated significant confusion about which services remain operational and which businesses are closed. While the designation applies specifically to executive branch federal employees, the broader implications affect millions of Americans navigating post-holiday activities including banking, mail delivery, shopping, and government services.
The executive order marks the first time in recent years that federal employees have received both the day before and the day after Christmas as official holidays. While Christmas Day has been a permanent federal holiday since 1870, the addition of December 24 and December 26 represents a temporary designation that applies only to 2025. This distinction is crucial because it means the order does not establish permanent changes to the federal holiday calendar and does not legally require private businesses, banks, or state and local governments to close their operations.
Understanding the Executive Order and Its Scope
The White House executive order states that all executive departments and agencies of the federal government shall be closed and their employees excused from duty on Wednesday, December 24, 2025, and Friday, December 26, 2025. However, the order includes an important caveat that allows agency heads to determine whether certain offices and installations must remain open for reasons of national security, defense, or other public need. This provision ensures that essential government functions continue uninterrupted even during the extended holiday period.
According to the executive order, December 24 and December 26 are considered as falling within the scope of Executive Order 11582 from February 11, 1971, which established procedures for federal holiday observance. The order specifies that these dates are treated similarly to other federal holidays where Saturday holidays are observed on the preceding Friday and Sunday holidays are observed on the following Monday for federal employees working standard Monday through Friday schedules.
To establish a permanent federal holiday, Congress must pass legislation that is then signed into law by the president. This process was most recently completed in 2021 when President Joe Biden made Juneteenth a federal holiday. The executive authority used for the December 24 and December 26 designation represents a temporary measure that presidents have occasionally employed to provide additional time off during the holiday season, but it does not carry the same legal weight as congressionally mandated holidays.
Historical Context of Presidential Holiday Declarations
Presidential executive orders granting federal employees extra time off during the Christmas season are not unprecedented, though the designation of both days surrounding Christmas is relatively rare. During his first term, President Trump issued similar executive orders designating Christmas Eve as a federal holiday in 2018, 2019, and 2020. In those years, December 24 fell on different days of the week including Tuesday and Thursday, prompting the decision to extend the holiday break for federal workers.
Former President Barack Obama also utilized executive authority to grant federal employees the day after Christmas as a holiday in 2014, when December 26 fell on a Friday. This created an extended holiday weekend for federal workers that year. President Joe Biden continued this tradition in 2024, issuing an executive order that closed federal departments and agencies on Tuesday, December 24, 2024, allowing employees to have a three-day weekend before Christmas.
The pattern of presidential holiday declarations typically depends on where Christmas falls within the weekly calendar. When Christmas Day lands on a Thursday, as it does in 2025, presidents often consider granting the following Friday as an additional holiday to create a longer break. The unique aspect of the 2025 order is the inclusion of both December 24 and December 26, providing federal employees with an exceptionally extended five-day holiday period when combined with the weekend.
Federal Services and Agency Operations on December 26
While the executive order designates December 26 as a federal holiday, not all federal services have ceased operations. The United States Postal Service remains fully operational on both December 24 and December 26, with regular mail delivery and retail services available at post office locations. The USPS operates under special circumstances as an independent federal establishment that is mandated to be self-financing and largely funded by revenue rather than tax dollars. The agency confirmed on its official social media channels that all retail lobbies would be open and letter carriers would be delivering mail on both dates.
The Social Security Administration has taken a different approach by choosing to remain open on December 24 and December 26, citing its commitment to meeting public needs. SSA Commissioner Frank Bisignano informed employees that field offices and phone lines would remain operational from 9 a.m. to 1 p.m. on both days, with processing centers staffed virtually and virtual administrative law judge hearings proceeding as scheduled. The agency solicited volunteers to work these days to balance the needs of the public with workforce considerations.
Similarly, the Internal Revenue Service announced plans to keep its operations running on both December 24 and December 26. Acting IRS Chief Human Capital Officer David Traynor explained that the agency would remain open to allow employees to continue working on mission-critical efforts. The IRS also sought volunteers to work these days, recognizing the importance of maintaining tax processing and taxpayer services during this period.
Non-Essential Federal Offices and Services
Most non-essential federal offices are closed on December 26, 2025, in accordance with the executive order. This includes Social Security Administration field offices for walk-in services, passport agencies, federal courthouses, and most administrative government buildings. Federal employees whose positions are deemed non-essential have been granted the day off, though many agencies have established procedures for employees to work remotely if necessary for urgent matters.
Federal buildings that house multiple agencies may have some offices open while others remain closed, depending on whether the specific agency or department determined that its services fall under the national security, defense, or public need exemption. Visitors planning to conduct business with federal agencies are strongly advised to contact the specific office in advance to confirm whether it will be open on December 26.
Banking and Financial Services Availability
Despite the federal holiday designation, the vast majority of banks remain open on December 26, 2025, operating on their regular business schedules. This operational status is directly tied to the Federal Reserve System, which has not adopted the additional holidays for its banking operations. The Federal Reserve Banks and their branches remain open and fully operational on both December 24 and December 26, maintaining critical financial infrastructure services that underpin the entire banking system.
The Kansas City Federal Reserve explicitly stated that all Federal Reserve Banks would be open and operational on Wednesday, December 24, and Friday, December 26, noting that federal government agency closures due to the executive action would not affect their operations. The Federal Reserve emphasized that because it is not a government agency and maintains critical operational responsibilities, it must remain open to ensure the stability and continuity of financial services across the nation.
Major Banks and Their Holiday Hours
Major commercial banking institutions including Chase Bank, Bank of America, and Wells Fargo have confirmed they will remain open on December 26, 2025. Chase Bank branches specifically announced they would operate normal business hours on Friday, December 26, following their closure on Christmas Day. For Christmas Eve on December 24, Chase indicated that branches would be open until 1 p.m. local time before closing early.
The operational status of banks on December 26 reflects their alignment with Federal Reserve operations rather than executive branch federal holidays. Federal Reserve Bank Services are only closed on those federal holidays designated by statute under 5 U.S.C. 6103(a), which includes eleven specific holidays throughout the year. Since December 24 and December 26 were designated through executive order rather than congressional statute, they do not trigger Federal Reserve closures or require banks to cease operations.
Customers can expect full access to banking services on December 26, including teller services, loan applications, account openings, and financial consultations. Online banking platforms and automated teller machines continue operating normally throughout the extended holiday period. Some smaller community banks and credit unions may have opted to follow the federal holiday designation and close their branches, so customers are encouraged to verify hours with their specific financial institution.
Stock Market and Investment Services
The New York Stock Exchange and Nasdaq both maintain full trading operations on December 26, 2025, with a complete trading day scheduled. This stands in contrast to Christmas Eve on December 24, when both exchanges closed early at 1 p.m. Eastern Time. Christmas Day on December 25 represents the only day during this holiday period when stock markets are completely closed, following the traditional observance of this permanent federal holiday.
The decision to keep markets open on December 26 aligns with the Federal Reserve’s operational schedule and reflects the global nature of financial markets. International trading partners and foreign exchanges continue their operations, making it essential for U.S. markets to remain accessible to maintain liquidity and enable cross-border transactions. Investment professionals, traders, and financial advisors are working their normal schedules on December 26 to serve clients and manage portfolios.
Retail Shopping and Consumer Services
The retail sector remains fully operational on December 26, 2025, with major retailers treating this day as one of the busiest shopping periods of the year. Stores including Walmart, Target, Best Buy, Home Depot, and other major chains are open and operating on their regular schedules. December 26 has traditionally been recognized as an important retail day, sometimes referred to as Boxing Day in Commonwealth countries, when consumers flock to stores for post-holiday sales, returns, and clearance shopping.
Retailers have prepared for significant foot traffic on December 26, anticipating high volumes of customers seeking to return unwanted gifts, exchange items for correct sizes or colors, and take advantage of post-Christmas clearance sales. Many stores have extended their return policies for holiday purchases, allowing returns well into January to accommodate the gift-giving season. Store employees work regular shifts, and customer service departments are fully staffed to handle the expected increase in transactions.
Grocery Stores and Essential Retailers
Supermarkets and grocery stores maintain their normal operating hours on December 26, ensuring that consumers have access to food and essential household items. Major grocery chains including Kroger, Safeway, Publix, and regional supermarket brands are open for business. Pharmacies within these stores and standalone pharmacy locations such as CVS and Walgreens also operate on regular schedules, providing prescription services and over-the-counter medications.
Restaurant chains and fast-food establishments are generally open on December 26, though individual franchises may set their own hours. Dining options range from quick-service restaurants to casual dining chains, many of which see increased traffic from families seeking convenient meal options during the extended holiday period. Delivery services including DoorDash, Uber Eats, and other platforms continue operating normally, connecting consumers with restaurant partners throughout the day.
Shipping and Package Delivery Services
The United States Postal Service maintains full operations on December 26, 2025, with regular mail delivery resuming after the Christmas Day closure. Post office retail locations are open for customers needing to purchase stamps, mail packages, or conduct other postal business. The USPS has confirmed that letter carriers will be delivering mail according to their regular routes, and blue collection boxes will be serviced on their normal schedules.
Private shipping carriers have adopted different approaches to December 26 operations. FedEx expects to be fully operational on December 26, though some freight services may run on modified schedules. The company maintains most pickup and delivery services, ensuring that time-sensitive shipments reach their destinations. FedEx Office locations may have varying hours depending on their specific location, with some closing early or operating on reduced schedules.
United Parcel Service has announced no pickup or delivery service for December 26, 2025, treating this day as an extension of the Christmas holiday closure. This decision represents a significant departure from federal government operations and affects both residential and business customers expecting UPS deliveries. The company typically resumes full operations on the next business day following this extended holiday break.
Impact on State and Local Government Services
State and local governments maintain independent authority over their own holiday schedules and are not bound by federal executive orders. As a result, operations at state and local levels vary significantly across the country on December 26, 2025. Some states have chosen to align their schedules with the federal holiday designation, while others maintain regular operations for state employees and government services.
Department of Motor Vehicles offices, state tax departments, and other state agencies operate according to their pre-established holiday calendars. In Illinois, for example, the Secretary of State’s Office announced that all offices and DMV locations would be closed on December 24 and 25 but would reopen on December 26. Other states may have different policies, making it essential for residents to check with their specific state agencies regarding operational status on this date.
Local government services including city halls, county offices, and municipal courts generally follow their own holiday schedules independent of federal designations. Many local governments close for Christmas Day but resume operations immediately on December 26, as this date has not historically been recognized as a local holiday. Public services such as trash collection, water utilities, and emergency services maintain their regular schedules, ensuring continuity of essential community functions.
Transportation and Travel Considerations
Transportation services operate on varying schedules during the December 26 federal holiday. Airports maintain full operations with all major carriers flying their regular schedules. The Transportation Security Administration continues screening passengers, and air traffic control services operate normally. Travelers should expect busy conditions at airports as people return home after Christmas visits or embark on extended holiday vacations.
Public transportation systems including buses, subways, and commuter rail services generally operate on their standard weekday schedules in most major metropolitan areas. Some transit agencies may implement weekend or holiday schedules, so passengers are advised to check specific route information before traveling. Ride-sharing services including Uber and Lyft maintain full availability, though surge pricing may apply during peak travel times.
Private Sector Employment and Business Operations
The executive order designating December 26 as a federal holiday does not create any legal requirement for private sector employers to close their businesses or grant employees time off. Private companies maintain complete discretion over their holiday policies and work schedules. Some large corporations and businesses have chosen to align their schedules with federal holidays as a matter of policy, while others continue normal operations regardless of federal designations.
Many private sector employees are working their regular schedules on December 26, 2025, particularly in industries that operate continuously such as healthcare, hospitality, retail, and customer service. Manufacturing facilities, warehouses, and distribution centers generally maintain their production schedules unless company-specific policies dictate otherwise. Professional services firms including law offices, accounting practices, and consulting companies typically determine their own holiday closures based on business needs and client commitments.
The employment implications of the federal holiday designation primarily affect the approximately two million federal civilian employees who work for executive branch agencies. These employees receive paid time off on December 26 unless they have been identified by their agency heads as necessary for national security, defense, or other public needs. Private sector workers do not receive any federal compensation or mandated time off based on this executive order.
Educational Institutions and Schools
Most educational institutions including K-12 schools and colleges are already closed for their scheduled winter break during the week of December 26, 2025. School districts typically plan their academic calendars months in advance, and the winter holiday break commonly extends from late December through early January. The federal holiday designation does not affect school schedules, as educational institutions operate under their own calendar systems established by school boards and university administrations.
Universities and colleges that operate on semester or quarter systems generally have concluded their fall term examinations before Christmas, with students returning home for winter break. Campus facilities may have limited operations during this period, with essential services maintained but most academic and administrative offices closed according to pre-planned schedules. The resumption of classes in January follows institutional calendars rather than federal holiday designations.
Healthcare Services and Medical Facilities
Healthcare facilities including hospitals, urgent care centers, and emergency rooms maintain continuous operations on December 26, 2025, providing essential medical services regardless of federal holiday designations. Hospital emergency departments remain fully staffed to handle medical emergencies, trauma cases, and urgent health concerns. Inpatient care continues uninterrupted for hospitalized patients requiring ongoing treatment and monitoring.
Medical offices and outpatient clinics operate according to their individual practice schedules, with many physician offices choosing to close for an extended holiday break while others maintain limited hours for patient appointments. Patients needing to schedule appointments or refill prescriptions should contact their specific healthcare providers to confirm availability on December 26. Urgent care centers typically remain open to provide medical services for non-emergency conditions that require prompt attention.
Legal and Regulatory Implications
The designation of December 26, 2025, as a federal holiday through executive order carries specific legal implications for federal deadlines and regulatory requirements. For purposes of federal regulations including the Truth in Lending Act and the TILA-RESPA Integrated Disclosure rule, the definition of business day means all calendar days except Sundays and the legal public holidays as stated in 5 U.S.C. 6103(a). Since executive order holidays are not statutory federal holidays under this section, they do not change TRID or rescission business-day calculations.
Federal court deadlines and filing requirements continue to be calculated based on the statutory federal holidays rather than executive order designations. This distinction is important for attorneys and parties involved in federal litigation, as court rules and procedures specifically reference the holidays established by Congress. While federal courthouses are closed on December 26 due to the executive order, this closure does not extend legal deadlines in the same manner as a congressionally designated holiday would.
Economic Impact and Workforce Considerations
The economic impact of designating December 26 as a federal holiday for 2025 extends beyond the immediate closure of federal offices. Federal holidays cost taxpayers substantial amounts in terms of paid leave for federal employees, with estimates suggesting that each federal holiday costs between 818 million and 918 million dollars in federal payroll expenses. The addition of two extra holidays around Christmas represents a significant expenditure, though supporters argue it provides important benefits for employee morale and work-life balance.
Private sector businesses continue generating economic activity on December 26, with retail sales representing a particularly significant component. Post-Christmas shopping drives substantial revenue for retailers as consumers seek bargains on clearance items and use gift cards received for Christmas. The contrast between federal employee time off and private sector operations creates an unusual dynamic where government services are limited while commercial activity remains robust.
Public Reaction and Political Context
The designation of December 24 and December 26 as federal holidays has generated mixed reactions across the political spectrum and among different stakeholder groups. Federal employee unions and associations generally welcomed the extended holiday break, viewing it as recognition of their service and a boost to employee morale during what has been described as a challenging year for the federal workforce. The additional time off provides employees with opportunities to spend extended periods with family and recuperate during the holiday season.
Critics of the executive order have raised concerns about the cost to taxpayers and the disruption to federal services during a time when some citizens need access to government assistance. The timing of the announcement, coming just one week before the holidays were to take effect, created logistical challenges for agencies attempting to determine which employees needed to work and which services could safely be reduced. Some commentators have noted that while federal employees receive extra paid days off, private sector workers and those needing federal services bear the consequences of reduced access.
The political context surrounding the holiday designation includes broader discussions about the appropriate number of federal holidays and the balance between employee benefits and government efficiency. President Trump has previously made statements suggesting that the United States has too many holidays and that excessive non-working days harm economic productivity. The decision to grant both December 24 and December 26 as holidays represents a departure from these earlier expressed concerns, reflecting the complex political calculations involved in workforce management decisions.
Future Implications and Permanent Holiday Considerations
The temporary designation of December 24 and December 26 as federal holidays for 2025 raises questions about whether these dates might be considered for permanent holiday status in future years. To achieve permanent designation, Congress would need to pass legislation establishing these dates as statutory federal holidays, a process that requires substantial political consensus and consideration of economic impacts.
Historical precedent suggests that establishing new permanent federal holidays requires significant cultural or historical justification. The most recent addition to the federal holiday calendar was Juneteenth in 2021, which commemorates the end of slavery in the United States and carries profound historical significance. Adding Christmas Eve and the day after Christmas as permanent holidays would need to overcome concerns about adding non-essential holidays to an already substantial list of eleven federal holidays.
The pattern of presidents issuing temporary holiday designations suggests that flexibility in holiday scheduling based on where Christmas falls in the weekly calendar may be preferred over permanent additions. This approach allows presidents to respond to specific calendar configurations while avoiding the permanent commitment and ongoing costs associated with statutory holidays. Future administrations will likely continue this practice of occasional temporary holiday designations based on their assessment of circumstances and priorities.
Conclusion
December 26, 2025, stands as a federal holiday for executive branch employees by virtue of President Trump’s executive order, creating an extended five-day holiday period when combined with Christmas Eve, Christmas Day, and the weekend. However, the impact of this designation varies dramatically across different sectors of American society. Federal offices are largely closed, but essential services including the postal system, Social Security Administration, and Internal Revenue Service maintain operations. Banks remain open following the Federal Reserve’s operational schedule, and the stock market conducts a full trading day. Retail businesses, restaurants, and most private sector companies operate normally, treating December 26 as a regular business day.
The temporary nature of the holiday designation means that Americans cannot expect December 26 to be recognized as a federal holiday in future years unless Congress passes legislation to make it permanent or subsequent presidents issue similar executive orders. The varied operational status of different services on this date underscores the distinction between executive branch federal holidays and the broader statutory holidays that affect banking, courts, and financial markets. Citizens seeking to conduct business or access services on December 26 must navigate this complex landscape by verifying the operational status of specific organizations and agencies relevant to their needs, recognizing that federal holiday designations do not uniformly apply across all sectors of American life.
