Napoleon finally concedes to the demands of reparations. Though America does not secure the $20 million demanded, they are officially freed from . Many Federalists do not accept the terms, but are too few to oppose them.
Wishing to have the succession secured, the Federalists agree to the terms, as well as agree to allow the Alien and Sedition Acts to expire, in a coalition with Libertarians. Upon the approval of the succession, King Henry I abdicates, and Prince Augustus Ferdinand is announced as King Augustus I.
John Adams reputation is extremely tarnished, and is convinced to not seek re-election. The campaign for Chancellor of America is ran by Libertarian Aaron Burr, Federalist John Marshall, and Republican James Madison. John Marshall secures the most votes, though not a majority, by the closest margins in American history up to that point. He does so only after selecting Elbridge Gerry as running mate to split the Libertarian vote, and Madison only gaining electoral votes in Tennessee and South Carolina. However, Libertarians become the largest party in Congress as the Federalists are increasingly viewed as aristocratic and elitist.