The Hightower trade comes hours after the Cardinals agreed to a four-year deal with running back Ryan Williams, the team's second-round pick this year.
The 25-year-old Hightower has rushed for 1,733 yards and 23 touchdowns over three seasons with the Cardinals. He had 736 yards and five touchdowns last season, and he also lost four fumbles.
Ryan Torain is the favorite to start for the Redskins at running back this season, but Hightower could push for the job. He rushed for 736 yards and five touchdowns last season. He also lost four fumbles.
The trade leaves Arizona with Williams and 2009 first-round pick Beanie Wells at running back.
Holliday spent one season with the Redskins, playing mostly as a reserve. The 35-year-old veteran has also played for Green Bay, Kansas City, Miami and Denver over 13 NFL seasons.
Information from The Associated Press contributed to this report.