According to the article, "The governor on Thursday plans to sign into law a bipartisan bill removing any legal risks of saying 'Merry Christmas' in Texas public schools."
Score one for the pro-religion faction. Unfortunately, this battle will never end. Since most parents don't have the option of sending their children to private schools that match their religious views, they end up fighting each other over control of public schools.
There's only one path to peace, as Libertarians have pointed out for many years: separation of school and state.