The Contras were the various U.S.-backed-and-funded right-wing rebel groups that were active from 1979 to 1990 in opposition to the Marxist Sandinista Junta of National Reconstruction Government in Nicaragua, which had come to power in 1979 following the Nicaraguan Revolution. Among the separate contra groups, the Nicaraguan Democratic Force (FDN) emerged as the largest by far. In 1987, virtually all Contra organizations were united, at least nominally, into the Nicaraguan Resistance.

Ronald Reagan's tenure as the 40th president of the United States began with his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a Republican from California, took office following his landslide victory over Democrat incumbent president Jimmy Carter and independent congressman John B. Anderson in the 1980 presidential election. Four years later, in the 1984 presidential election, he defeated former Democratic vice president Walter Mondale, to win re-election in a larger landslide. Due to U.S. Constitutional law, Reagan was limited to two terms and was succeeded by his vice president, George H. W. Bush, who won the 1988 presidential election. Reagan's 1980 landslide election resulted from a dramatic conservative shift to the right in American politics, including a loss of confidence in liberal, New Deal, and Great Society programs and priorities that had dominated the national agenda since the 1930s.