The 11 US Federal Holidays
The US government recognizes 11 federal holidays each year. On these days, federal offices close, the Federal Reserve does not operate, and ACH settlements do not occur. Banks typically follow the Fed schedule and close as well.
| Holiday | Date | Fed Closed? |
|---|---|---|
| New Year's Day | January 1 | Yes |
| Martin Luther King Jr. Day | Third Monday in January | Yes |
| Presidents' Day | Third Monday in February | Yes |
| Memorial Day | Last Monday in May | Yes |
| Juneteenth National Independence Day | June 19 | Yes |
| Independence Day | July 4 | Yes |
| Labor Day | First Monday in September | Yes |
| Columbus Day | Second Monday in October | Yes |
| Veterans Day | November 11 | Yes |
| Thanksgiving Day | Fourth Thursday in November | Yes |
| Christmas Day | December 25 | Yes |
Source: U.S. Office of Personnel Management (OPM). Federal holiday dates and observance rules are published annually by OPM. The Federal Reserve publishes its holiday schedule at federalreserve.gov.
Observed Holiday Rules
When a fixed-date holiday falls on a Saturday, it is observed on the preceding Friday. When it falls on a Sunday, it is observed on the following Monday. The observed date — not the calendar date — is the non-business day.
Holidays that always fall on Mondays (MLK Day, Presidents' Day, Memorial Day, Labor Day, Columbus Day) never have observance issues because they never fall on a weekend.
If July 4 falls on a Saturday → observed on Friday, July 3. Friday is not a business day. Payments resume Monday, July 6.
If December 25 falls on a Sunday → observed on Monday, December 26. Monday is not a business day. Payments resume Tuesday, December 27.
Why Holidays Delay Payments
The Federal Reserve is the backbone of US payment settlement. When the Fed is closed:
- ACH transactions do not settle — credits and debits queued during the holiday process on the next business day
- Fedwire does not operate — real-time wire transfers cannot be executed
- Check clearing pauses — checks presented on a holiday begin processing the next business day
Even though you can submit a payment or deposit a check on a holiday through online banking, the actual settlement and posting does not occur until the next business day. Your bank may show a "pending" status during this gap.
Holiday Weekends Create Multi-Day Gaps
When a holiday falls on a Monday or Friday, it creates a three-day stretch with no payment processing (Saturday + Sunday + holiday). If you submit a payment after cutoff on the preceding Friday, it may not process until Tuesday.
For more on how this compounds with cutoff times and weekends, see Weekend and Holiday Payment Delays.