Bart and Milhouse jump on the bed in drag and Bart breaks his coccyx and he has to begin using a wheelchair. The school is not equipped for a handicapped student, so Skinner makes a deal with Fat Tony. The mob will build ramps. Soon after the ramps are completed, they crumble. To add to the troubles, Fat Tony charges $200,000 for the job. Skinner opts to pay it, but he has to close the school. The neighborhood has a meeting to figure out how to give the kids an education. They try to get Mr. Burns to donate by performing a play. It doesn't work. Then a private company buys the school and reopens it. The new teachers encourage students to break books, and then they ask students about what kinds of toys they like. Lisa makes a shocking discovery about the new ownership; they are a top company and they using the children for research to design the hot new Christmas toy. Lisa and Bart go to investigate the company without success; the company's security guard is Gary Coleman. The kids do discover that the toy, Funzo, destroys other toys. They go to take all of the town's Funzos from people's homes. Homer helps them out and they go to burn them all. Homer, Lisa, and Gary Coleman get into an in depth philosophical discussion that lasts all night (but what sort of philosopher would celebrate Christmas anyway?). When Christmas comes, Homer invites Gary Coleman. It is a wonderful Christmas, thanks to the Simpson family.

As the year 2000 approaches, Hank becomes a believer in the Y2K bug. He tries to prepare for the millennium by eliminating modern technology, and instead of buying Peggy the new computer she wanted, he gets her an old grandfather clock. Strickland Propane closes its doors in the midst of the panic, leaving customers lined up at the door, as Hank does the unthinkable, and takes off with the only remaining Propane Tanks.

While the crew takes a vacation skiing, Fry becomes depressed by how much Christmas has changed in the future. Besides the difference in pronunciation and the extinction of pine trees, jolly St. Nick is now a man to be feared. It's Fry's first Christmas away from home, and he has no one to share it with. Leela is also feeling lonely; growing up as an orphan has left her with no family to share the holiday. Fry is determined to cheer her up, so he goes out to find her the perfect gift. Everyone warns him to be back by sundown lest he be killed by Santa. But when Fry's gift, a pet parrot, escapes, he neglects their warning trying to capture it. Leela then learns of his absence and runs out to get Fry before Santa Claus does. The two unite to confront the Xmas enemy.

Hermes is informed that the company where he works is going bankrupt and that they are going to fire all the employees. Miguel calls Betty to confirm their meeting. Armando goes with Betty to the banks to register his signature.