In the aftermath of Watergate and Vietnam, Congressional investigations uncovered the largely unknown activities of the CIA and other agencies, which included arming and interfering in the domestic politics of regimes in both Central America and Iran. These programmes had also involved supporting reactionary regimes in ways that some saw as drawing the United States into conflicts, like Vietnam, without public knowledge or consent. In 1987, it was revealed that the Reagan administration had operated a clandestine policy in Nicaragua that evaded the restrictions placed upon the executive by the Boland Amendment in terms of aid given to the Nicaraguan Contras and that National Security Council (NSC) staff had lied to Congress and concealed these illegal actions. They had solicited funds from foreign allies and smuggled arms to the Contra insurgents in support of their efforts to topple the Sandinista regime. Contrary to the Arms Export Control Act and to its own publicly stated policy, the administration had also sold arms, particularly missiles, to Iran, which had been branded a sponsor of international terrorism since the Iranian revolution, and which was currently at war with its neighbour, Iraq. Such deals had formed part of ‘arms for hostages’ negotiations that were also contrary to official policy. Finally, it was disclosed that profits from the arms sales had been diverted to fund the Contras and hence to evade Congressional restrictions on funding. This article explores why these illegal actions did not result in President Reagan’s impeachment. It considers the merits of the administration’s claims that this was a ‘rogue operation’ by zealots within the NSC, and the success of its efforts to present Reagan as eager to cooperate with efforts to discover the truth of what had happened. It reviews the interactions between the Tower Commission, Congressional investigations and Office of Independent Counsel probe (Lawrence Walsh) and shows how these contributed to Reagan’s ‘escape’ from impeachment. It reviews the argument that Reagan’s underlying health problems contributed to his lax management of NSC operations and it considers the importance of televised testimony, particularly that of Oliver North, in shaping public opinion in the administration’s favour. Finally, it considers how this significant episode in 1980s politics foreshadowed major trends in US politics that can be seen as culminating in the present, acute partisan divide, Donald Trump’s double impeachment, and a manifest decline in public trust and respect for American political institutions.