July 5th is a federal holiday only in years when Independence Day, July 4, falls on a Sunday. When that happens, the observance shifts to Monday, July 5, and federal offices close. In every other year, July 5 is an ordinary day and the government operates on its normal schedule.
Why the Date Sometimes Shifts
Independence Day is one of eleven public holidays set by federal law, and it’s fixed to the calendar date of July 4.1Office of the Law Revision Counsel. 5 U.S. Code 6103 – Holidays Because fixed-date holidays sometimes land on weekends, two rules govern the shift for federal employees on a standard Monday-through-Friday schedule:
- If July 4 falls on a Saturday, the observed holiday moves back to Friday, July 3.
- If July 4 falls on a Sunday, the observed holiday moves forward to Monday, July 5, under Executive Order 11582.2U.S. Office of Personnel Management. Federal Holidays
That Sunday rule is the only mechanism that turns July 5 into a federal holiday. Congress has never designated July 5 as a holiday in its own right.
When July 5 Is Next a Federal Holiday
The next time July 5 will function as an observed federal holiday is 2027, when July 4 falls on a Sunday. After that, the calendar won’t produce another Sunday July 4th until 2032. The last occurrence was 2021.
What About 2026?
In 2026, July 4 is a Saturday. The Saturday rule applies, so the observed federal holiday is Friday, July 3.2U.S. Office of Personnel Management. Federal Holidays July 5, 2026 is a Sunday, and federal employees return to work on Monday, July 6. There’s no extended weekend beyond the usual Saturday and Sunday.
Financial infrastructure follows the same Friday observance. FedACH processing for the holiday ends on Friday, July 3, 2026 at 11:30 p.m. ET and resumes Sunday, July 5 at 5:30 p.m. ET.3Federal Reserve Bank Services. FedACH Holiday Schedule The New York Stock Exchange and Nasdaq are closed Friday, July 3, 2026.4NYSE. Holidays and Trading Hours
What Closes When July 5 Is the Observed Holiday
In a Sunday-July-4 year, Monday, July 5 works like any other federal holiday. The Postal Service suspends regular mail delivery and closes retail windows; in 2021, USPS facilities were closed on Monday, July 5 with no regular delivery and only limited collection runs.5United States Postal Service. USPS Will Observe the Independence Day Holiday on July 5 Federal courts close on observed holidays under the same shift rules, delaying the processing of filings and other official paperwork.6United States Court of International Trade. Court Hours and Holidays – Section: Holidays
The Federal Reserve observes all eleven federal holidays using the same weekend-shift rules.7Federal Reserve Board. Holidays Observed – K.8 On an observed holiday, Fedwire funds transfers and ACH processing both shut down, because the Federal Reserve Banks treat every holiday as a non-settlement day.8Federal Reserve Bank Services. Wholesale Services Operating Hours A bank transfer initiated on the observed holiday won’t settle until the next business day.
Does Your Employer Have to Give You July 5 Off?
Federal holiday rules bind the federal government, not private businesses. The Fair Labor Standards Act does not require private employers to give time off or pay a premium for work performed on any holiday. Whether you get July 5 off depends entirely on your employer’s policy or your employment agreement.9U.S. Department of Labor. Holiday Pay Many private employers follow the federal calendar as a matter of convenience, but they’re under no legal obligation to close when the government does.