The Obama administration has directed the military to not allow personnel to say “Christmas”, in spite of the holiday’s status as a federally-recognized holiday.
The reason given by armed forces officials is that not everyone celebrates Christmas and that out of respect for them, military members should refer to Christmas celebrations simply as “holiday”-themed festivities.
This prohibition comes in the context of a wider push for political correctness in society in general and the military in particular, as evidenced by the recent reprimanding of Navy Chaplain Wes Modder for simply discussing religion, as chaplains are wont to do, with military personnel.
See how servicemen have reacted to not being allowed to say Christmas at the link below:

He signed this order and then whipped out his prayer rug, faced Mecca and said “Allah, I did a good thing for you today”
Are you a CHRISTIAN or one of his minions? ITS MERRY CHRISTMAS IF YOUR A REAL CHRISTIAN. STAND UP.
I say get rid of this imposter. Send him to the middle east from which he came.
An outright attack on Christians
Send bacon cards of cheer with bags of pork rinds.
bull
Wow I didn’t know we lived in a communist country
I’m sick of him and his attacks on christianity
http://facebook.com/WhiteHouse?refid=17
False
http://www.snopes.com/christmas-card-ban-military/