In 1985, Reagan began authorizing the sale of arms to Iran in exchange for its work to free American hostages held captive in the Middle East. Two years later this would turn into the "Iran-Contra" scandal, as the proceeds of those sales were intended to be sent to anti-communist freedom fighters in Nicaragua (the "Contras"). Congress, which was controlled by Democrats, had passed a law prohibiting funding of the Contras, and saw this as a violation of that law. Reagan was never charged with any crime, however. This became known as the "arms for hostages" deal. | In 1985, Reagan began authorizing the sale of arms to Iran in exchange for its work to free American hostages held captive in the Middle East. Two years later this would turn into the "Iran-Contra" scandal, as the proceeds of those sales were intended to be sent to anti-communist freedom fighters in Nicaragua (the "Contras"). Congress, which was controlled by Democrats, had passed a law prohibiting funding of the Contras, and saw this as a violation of that law. Reagan was never charged with any crime, however. This became known as the "arms for hostages" deal. |