Can you spend a Santa Claus dollar?

Answer 1

Most definitely, but it depends on the kind of bill it is.

If it's an ordinary US $1 bill with a picture of Santa pasted over Washington's portrait you can spend it anywhere.

If it's not a real bill but was specially printed for a promotion, local market, a fair, etc. you can only spend it in participating stores.

Answer 2

Yes. It's an ordinary US $1 bill with a picture of Santa pasted over George Washington's portrait.

The portrait was added after the bill was printed - it didn't come from the Treasury that way. You can find them with other pictures, too. The most common ones are The Easter Bunny and Elvis Presley.