Yes, it's true folks. The United States government allowed the image of Santa Claus to be put on a $1 bill.
Well, not quite, but close.
Here's info from the Dept of Printing and Engraving
What is a Celebrity Note? A celebrity note is a note upon which the portraits of well-known personalities (such as Santa Claus and movie stars) are temporarily affixed. They, for the most part, are found to be genuine United States currency. Private businesses produce these novelty items by purchasing new currency notes from banks and subsequently apply the picture of a well-known personality over the engraved portrait on the note by means of a pressure-sensitive adhesive.