The Iran-Contra political scandal was a vast, elaborate scheme during the 1980s. Also known as the Iran-Contra affair, it was a complicated plan during the Raegan presidency that made all the top headlines. The scheme involved the National Security Council (NSC) taking part in activities that strongly opposed America’s laws and policies. The U.S. government did not allow selling arms to Iran, paying ransom for hostages, or funding contrast beyond the limits Congress had set. Reagan's administration did not consider the legal implications of their activities when they engaged with Iran and Nicaragua, two countries that were essentially unrelated.

Reagan's administration started by selling arms to Iran knowing that the country was in dire need of war equipment. The NSC aimed to help Iran fight its enduring war against Iraq. In return, Iran had to use its resources to help free American hostages trapped in Lebanon. Iran purchased the weapons at very high prices, giving the American government an excess amount of profit. Simultaneously, the Sandinista government in Nicaragua posed a threat to America’s national interests. Reagan's administration began to use the Iran arms sale profits to find contras fighting against the Sandinista government.

Soon Americans began to oppose this scheme for funding the contras. Congress even passed a law to ban the activities. However, Reagan's administration continued to deploy their plans in secret. Eventually, the press revealed these illegal activities in November 1986 and three thorough investigations followed. The last investigation, conducted by a federal prosecutor, set forth the appropriate charges, which led to the conviction of many administration members. This included Adm. John Poindexter who was Reagan's national security adviser. The president himself was not affected, although people held various opinions regarding his involvement in this affair.