The U.S. Congress made Independence Day an unpaid holiday for federal employees in 1870.
The law was part of federal legislation recognizing several holidays for government workers. At that stage, the holiday did not yet carry the paid status familiar to modern federal employees.
Congress later changed the arrangement. In 1938, Independence Day became a paid federal holiday. The distinction matters because public recognition of July 4 developed gradually after the Declaration’s adoption rather than appearing fully formed in 1776.
Americans had celebrated July 4 long before Congress gave it federal employment status. Early observances included public dinners, speeches, military ceremonies, music, parades, gun salutes, and fireworks. The holiday’s national importance grew alongside the United States and became especially prominent during later anniversaries such as the 1876 centennial.