The Tower Commission, officially known as the President's Special Review Board, was established to investigate the Iran-Contra affair, a political scandal during the presidency of Ronald Reagan. The Iran-Contra affair involved the clandestine sale of arms to Iran, which was under an arms embargo, with the goal of securing the release of American hostages held by Hezbollah, an Iranian-backed group. The proceeds from these arms sales were then redirected to support Contra rebels fighting the Sandinista government in Nicaragua, bypassing Congress's prohibition against such funding. This affair raised serious ethical and legal concerns regarding the Reagan administration's operations and decision-making processes.

In its report, released on February 26, 1987, the Tower Commission concluded that President Reagan had not adequately controlled his national security staff and had been uninformed about the activities they were undertaking. The commission criticized the lack of a clear chain of command and transparency within the National Security Council, suggesting that Reagan's management style contributed to the abuses of power and illicit operations that characterized the affair. It emphasized the need for improved oversight mechanisms in presidential operations to prevent similar occurrences in the future.

The report also pointed to the troubled relationship between the Reagan administration and Congress, particularly regarding foreign policy and military actions in Central America. Following the revelations of the Iran-Contra affair, the commission's findings contributed to a broader debate about executive power and accountability and sparked extensive public and media scrutiny of the Reagan administration. The incident not only damaged Reagan's credibility but also led to legal consequences for several of his top aides, highlighting the importance of checks and balances in government.