But it wasn't all government; newspapers (most notoriously Der Stürmer, but many others), street signs, shop signs driving licenses (still valid today) and such were increasingly written in Fraktur.
Then suddenly one day in 1941 it was suddenly declared „Judenschrift‟ -- "jewish writing", and this time a writing was declared legally forbidden. And as far as I can tell, nobody knows why!
Despite all that I have found in my mother in law's house books in Fraktur from the 30s, 40s, and even a couple from the 50s. I have one from the 50s on my desk right now! And you do see it on various signs in shops, some street name signs, and other random other places, especially when you want an old-timey feel (traditional restaurant, perhaps Glühwein Bude in the woods, and such). If people had a strong nazi identification I don't think you'd see it. Maybe that's just a USA thing. Fraktur was used extensively in other parts east of Germany (e.g. Czech) well into the 20th century as well, but I haven't seen it so much there -- I wouldn't at all be surprised if that was due to the Nazi past.
Fraktur has some nice ligatures, including ch, ck, ss, sz, ch, sch, tz, etc, of which only ß (and ä, ö, ü of course) survived in roman. Weirdly, ß is pronounced "s" "z", written as a ligature of s & z, but when unavailable, is replaced in Latin text with "ss".