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July 4th Becomes A National Holiday. In 1870, the U.S. Congress made July 4th a federal holiday; in 1941, the provision was expanded to grant a paid holiday to all federal employees.
By 1894, 23 other states had adopted the holiday in honor of workers, and on June 28 of that year, Congress passed an act making the first Monday in September of each year a legal holiday in the District of Columbia and the territories.