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The Nixon pardon was, and continues to be highly controversial. It probably cost Ford the 1976 election. Critics derided the move and claimed, a "corrupt bargain" had been struck. They claimed Ford's pardon was given in exchange for Nixon's resignation that elevated Ford to the Presidency. According to Bob Woodward, Nixon Chief of Staff Alexander Haig proposed a pardon deal to Ford. In his book Shadow, Woodward states that Haig entered Ford's office on August 1, 1974 while Ford was still Vice President and Nixon had yet to resign. Haig told Ford that there were three pardon options: (1) Nixon could pardon himself and resign; (2) Nixon could pardon his aides involved in Watergate and then resign; or (3) Nixon could agree to leave in return for an agreement that the new president would pardon him. After listing these options, Haig handed Ford various papers; one of these papers included a discussion of the president's legal authority to pardon, and another sheet was a draft pardon form that only needed Ford's signature and Nixon's name to make it legal.
Woodward described the setting between Haig and Ford as follows: "Even if Haig offered no direct words on his views, the message was almost certainly sent. An emotional man, Haig was incapable of concealing his feelings; those who worked closely with him rarely found him ambiguous."
Ford decided to pardon Nixon for other reasons. It is speculated that it was done primarily the friendship he and Nixon shared. Many historians believe the controversy was one of the major reasons Ford lost the election in 1976, an observation with which Ford concurred. In an editorial at the time, The New York Times stated that the Nixon pardon was "a profoundly unwise, divisive and unjust act" that in a stroke had destroyed the new president's "credibility as a man of judgment, candor and competence.
Ford's first press secretary and close friend Jerald terHorst resigned his post in protest after the announcement of President Nixon's full pardon. Ford also voluntarily appeared before Congress on October 17, 1974 to give sworn testimony—the only time a sitting president has done so—about the pardon.
After Ford left the White House in 1977, it was said that the former President privately justified his pardon of Nixon by carrying in his wallet a portion of the text of Burdick v. United States, a 1915 U.S. Supreme Court decision which stated that a pardon indicated a presumption of guilt, and that acceptance of a pardon was tantamount to a confession of that guilt.
In 2001, the John F. Kennedy Library Foundation awarded the John F. Kennedy Profile in Courage Award to Ford for his pardon of Nixon. In presenting the award to Ford, Senator Ted Kennedy said that he had initially been opposed to the pardon of Nixon, but later stated that history had proved Ford to have made the correct decision.
Below is a YouTube video of Ford's address to the nation on the pardon of Nixon.