Bob Alexander megpróbálja lejáratni Dave-et azzal, hogy belekeveri egy pénzügyi botrányba, de ebben az ügyben, ahogy Dave megtudja Reedtől, az igazi Mitchell elnök valóban bűnös. Ezzel párhuzamosan Alexander a saját elnöki jelölését kezdi reklámozni.
A nagy dobra vert pénzügyi botrány ellenére Dave visszautasítja a meghirdetett foglalkoztatási javaslatának elvetését. Később ő és Nance alelnök elbeszélgetnek egymással, közben Dave megtudja, hogyan kezdte Nance a politikai pályafutását. Nance
elmondta, hogy mindig is érdekelte a politika, és miután évekig csak panaszkodott a városi önkormányzat munkájára, felesége bátorítására elhatározta, hogy jelölteti magát képviselőnek. Megtakarított kétezer dollárjukból kezdte politikai karrierjét a városi tanácsban, amit Dave őszinte tisztelettel dícsér.
During the uproar over the scandal, Dave refuses to stop pushing his employment bill. Later, Dave and Nance have a short conversation where Dave inquires about Nance's start in politics. During the discussion, Nance reveals that he has always been opinionated, and after complaining for years about poor city administration, decided to run for office with his wife's encouragement. Running on a shoestring budget of $2,000, he began his political career as a city councilman, to which Dave compliments with sincere admiration. The two bond briefly, and Dave admits later a real admiration for Nance's dedication despite his humble beginnings as a disgruntled shoe salesman. Dave and First Lady Ellen Mitchell agree that Nance is a genuinely public-minded man, and would make a fine president.
In a joint session of Congress, Dave, as Mitchell, admits to his role in the scandal, but introduces evidence (provided by Reed) proving that Alexander was the mastermind and that Nance was innocent. He then seals this by turning to Nance, who is presiding over the joint session, publicly apologizing to him and vindicating him by stating his civic virtues. In the middle of making a formal apology to the nation, Dave fakes a stroke, and is taken to a hospital. In the ambulance, Dave is swapped for the real President Mitchell, who is rolled into the hospital. In the ambulance's cab, Dave (now in street clothes) says goodbye to Duane, who comments he would have taken a bullet for Dave. As she is led into the hospital, Ellen takes a brief look at Dave walking away in the distance.
News reports state that Mitchell had a second stroke, this time much more severe, and was declared incapacitated under the 25th Amendment. Five months later, Mitchell dies and is buried at Arlington National Cemetery. The groundswell of affection generated by Dave's brief time in office has transferred to the real Mitchell, as the public and the media mourn his death. The ruse apparently remains undiscovered; although Bob Alexander is later arrested and indicted, there is no indication that he reveals the secret, since doing so would compound his liability. Nance becomes President (apparently taking Reed as his Chief of Staff) and promises to carry out "Mitchell's" employment program. In his Inaugural Address he states that this is still "Bill Mitchell's" term, and dedicates himself to continuing the spirit of Dave's administration.
Dave is running his own campaign for city council (not coincidentally, the same way Nance got his start) and has recruited Murray and his own office staff to help with the campaign while continuing to help people find jobs. Ellen Mitchell, now a widow, comes into the office, now littered with campaign materials, asking for a job, and kisses him. When the door of his office closes, Duane steps in front, wearing a Vote Kovic button.