A Federal Holiday is a day recognized by the federal government of the United States, during which federal employees are typically given a day off with pay. These holidays are established by law and apply to federal institutions, including government offices and agencies. Common examples include New Year's Day, Independence Day, and Thanksgiving. On federal holidays, many businesses and schools may also close or operate on reduced hours. These holidays often commemorate significant events or figures in American history, such as Martin Luther King Jr. Day and Memorial Day, providing an opportunity for reflection and celebration.