A small town mayor fights to uphold the local Christmas traditions after his former high school rival returns from the big city, and complains that the locals are violating the constitution's Establishment clause. Every December, Trapper Falls Alaska mayor Dan Reed (Ted McGinley) and his brother Greg (Brad Stine) take time out from their busy schedules to set up a Nativity scene, and blanket the town with Christmas decorations. But 20 years after leaving Trapper Falls, Mitch Bright (Daniel Baldwin) is back, and he's determined to challenge tradition. Not only does Mitch want the Nativity scene dismantled and the Christmas decorations altered to read "Seasons Greetings," but he's determined to unseat Dan as mayor as well. Later, as the case goes to court, Dan's wife Kristen (Nancy Stafford) and daughter Makayla (Francesca Derosa) attempt to maintain solidarity among the locals by launching a pro-Christmas campaign titled "Christmas with a Capitol C." In the process, they inadvertently uncover the reason Mitch has returned to town bearing such a bitter grudge against his former friends and neighbors.