The term "Veterans Day" functions as a proper noun. It is a compound noun that serves as the specific name of a federal holiday, and as such, it operates as a single lexical unit within a sentence.
Grammatically, the phrase is composed of two nouns. The head noun is "Day," which is modified by the preceding noun "Veterans." In this construction, "Veterans" acts as a noun adjunct or attributive noun, functioning like an adjective to describe the purpose of the day. The official U.S. government spelling intentionally omits an apostrophe, clarifying that the term is not possessive (i.e., a day belonging to veterans) but descriptive (a day for honoring all veterans).
As a single proper noun, the entire phrase can serve as the subject, object, or complement in a sentence. For example, in the statement "We observe Veterans Day on November 11th," the term acts as the direct object of the verb "observe." Correctly identifying it as a proper noun is crucial for proper capitalization and grammatical usage in any text.
