Christmas Eve and Boxing Day Federal Holidays 2025

On December 18, 2025, federal personnel policy shifted significantly when an Executive Order was issued mandating the closure of executive departments and agencies on Wednesday, December 24, and Friday, December 26, 2025. This directive, centered around the statutory Christmas Day holiday on Thursday, effectively establishes a five-day weekend for nearly two million civilian employees.

This report provides an exhaustive examination of the Executive Order. While the public and media have colloquially termed the December 26 closure as the adoption of "Boxing Day", a holiday traditionally observed in Commonwealth nations, the legal reality is one of administrative leave rather than the legislative creation of a new permanent federal holiday.

The 2025 Executive Directive: Legal Anatomy

The Executive Order, titled "Providing for the Closure of Executive Departments and Agencies of the Federal Government on December 24, 2025, and December 26, 2025," serves as the foundational document for this analysis. Signed on December 18, 2025, the order leverages the President's Article II executive authority to manage the operations of the executive branch.

Administrative Leave vs. Statutory Holidays

A critical distinction must be drawn between the action taken in 2025 and the creation of a "Federal Holiday" in the statutory sense. The U.S. Congress possesses the sole authority to establish permanent legal public holidays. The President’s order does not amend this statute; instead, it utilizes administrative authority to grant "excused absence," often referred to as administrative leave.

The "Five-Day Weekend" Construct

The timing of the 2025 holidays created a unique chronological opportunity. With Christmas Day falling on a Thursday, the granting of Wednesday (Christmas Eve) and Friday (December 26) bridges the gap between the holiday and the weekend.

The "Boxing Day" Question: International vs. Domestic

While often referred to as "Boxing Day Federal Holidays," this terminology requires rigorous unpacking, as "Boxing Day" is a concept alien to U.S. law but central to the 2025 holiday experience.

The United States never officially adopted Boxing Day. Following the American Revolution, many British customs were discarded. For most Americans, December 26 is typically a standard workday, albeit one with high rates of absenteeism and returns of retail goods.

Workforce Administration and OPM Policy

Implementing a five-day weekend for a workforce as diverse as the federal government—ranging from park rangers to nuclear scientists—requires complex administrative machinery managed by the Office of Personnel Management (OPM).

"In-Lieu-Of" Holiday Rules

Federal holidays are governed by strict "in-lieu-of" rules to ensure every employee gets a day off. In 2025, the holidays and administrative closures fall on weekdays. According to OPM memorandums, if an employee's non-workday falls on a day of administrative closure (like Dec 26), they are generally entitled to an "in-lieu-of" day, typically the preceding workday.

Economic Impact: Markets, Banking, and Retail

The closure of the federal executive branch sends shockwaves—both positive and negative—through the U.S. economy.

Financial Markets: The Divergence

A critical misconception is that a "federal holiday" closes the stock market. This is false. The major stock exchanges are independent entities. While markets are open on Dec 26, the federal regulators who police them—the SEC and CFTC—will be closed.

Operational Case Studies: USPS and The Courts

The United States Postal Service (USPS)

The USPS occupies a unique semi-independent status. While it is an executive agency, its operations are funded by revenue, not appropriations. Post offices remain open on December 24 for "last mile" delivery. On December 26, unlike the rest of the federal government, the USPS typically resumes full operations to clear the massive accumulation of holiday mail.