Final answer:
The Reagan administration faced criticism over its War on Drugs policies, noted for exacerbating racial disparities and for the controversial Iran-Contra Affair that fueled accusations of indirect assistance to drug traffickers.
Step-by-step explanation:
The Reagan administration's approach to the War on Drugs has been widely criticized for policies that some perceive as racially biased and disproportionately affecting minorities and the poor. Crack cocaine, which was more likely to be used by these groups, carried harsher penalties compared to powder cocaine, which was typically associated with more affluent users.
The controversy intensified with the Iran-Contra Affair, where it was revealed that the Administration had covertly sold arms to Iran and diverted the proceeds to support the Contras in Nicaragua, despite a congressional ban. Critics argued that given the Contras' dependency on drug money, the Administration had indirectly supported drug traffickers.