The Iranian hostage crisis ends with the safe return of all US captives back to the US, President Carter narrowly wins a re-election against Ronald Reagan the following week.
President Carter begins to aggressively push for more infrastructure spending by congress to revitalize the US economy. Much of this legislation is directed toward weening the US off of Middle East oil.
President Carter nominates Sandra Day O'Connor to the Supreme Court, she is confirmed the same year.
The US raises the CAFE standards to 100 mpg by 1995. Automakers are taxed if they do not meet yearly emissions and milage standards.
President Carter's approval ratings are still not much higher than 50% overall, and remain as such for much of the year.
Congress passes the renewal of federal funds for medicinal marijuana.
The Republicans in Congress pass renewals to the tax code, lessening the burden on businesses, and bringing mild deregulation to certain areas of public life. These reforms are led by TIP O'Neil, but are far less radical than those by Reagan in OTL.
Congress passes President Carter's infrastructure plans along with support for American Manufacturing and Urban Renewal efforts.
Afghanistan receives reconstruction funding from the US following the withdraw of the Soviet Union. The funds create an infrastructure network, along with schools and hospitals for the millions of displaced Afghans.
President Dole announces the New Frontiers Project. The goal of which is to build three new space shuttles, and increase funding to the new Space Station. The project also introduces funds to develop a craft that can be assembled on the new station and launched in space to the moon, and potentially Mars.
Saddam Hussein invades Kuwait. The US condemns the action, but chooses not to get involved, as the US dependance on Middle Easter oil has been declining since the Carter administration and the OPEC gas hikes.
Government scientists debut the first practical thin film solar cells. These only increase American opposition to intervening in Kuwait, as the cells make cheap electrical power possible for every American.
With a narrow Democrat majority in Congress, President Dole passes the Medicare Reform Act.
President Dole ends aid to Afghanistan during the budget cuts. Afghanistan has an agrarian society, and a level of political stability similar to neighboring Pakistan, somewhat unstable, but considerably better than OTL.
General Motors releases receives heavy taxation when they fail to meet the 1981 CAFE standards.