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Dave Kovic runs a temporary employment agency in Georgetown, Washington, D.C., and, as a side job, capitalizes on his remarkable resemblance to President Bill Mitchell by comically impersonating him at events. Secret Service agent Duane Stevenson recruits him to impersonate Mitchell after a speech, ostensibly as a security precaution, but actually to allow Mitchell to meet Randi, a White House staffer with whom he is having an affair.

Dave's appearance goes well, but Mitchell suffers a major stroke while having sex with Randi. His Chief of Staff, Bob Alexander, is inspired to ask Dave to continue in his role. Bob's scheme is to force Vice President Gary Nance to resign by embroiling him in a savings and loan scandal; then Dave, acting as Mitchell, will appoint Bob vice president; then Dave will fake a more serious stroke and Bob will become president. Communications Director Alan Reed is initially hesitant, but eventually acquiesces and tells the press corps the stroke was minor. Claiming that Nance is mentally unstable, Bob and Alan convince Dave he must continue impersonating Mitchell for the good of the country. Nance is sent on a goodwill tour of Africa.

Dave's charm and enthusiasm improves Mitchell's image and popularity. First Lady Ellen Mitchell, who has been estranged from her husband for years, initially suspects nothing and treats Dave with contempt on the few occasions they see each other. When she sees Dave's empathy towards a shy boy at a homeless shelter she is a staunch advocate for, she begins to soften towards him. Her fury returns, though, after Bob forges Mitchell's signature on the veto of a bill that included funding for the shelter. Dave, after consulting his accountant friend Murray Blum, works with the Cabinet to restore the funding. A furious Bob threatens to destroy Dave, but Alan vows to expose their scheme if he does.

Ellen, having witnessed Dave's considerable efforts to save the shelter, tricks him into admitting he's an impostor and asks to see her husband. Dave has Duane escort them to the secret hospital room beneath the White House, where Mitchell remains in a coma. They are told he won't recover. They both resolve to leave the White House, but after spending a night out alone together, they begin to fall in love. Ellen tells Dave she's gone along with the charade of a happy marriage because she thought that as First Lady, she could help people. Dave tells her he wishes he could.

The next day, Dave, still as Mitchell, calls a press conference, making Bob furious that Dave is no longer obeying him. Dave fires Bob, who in turn tries to fire him, but Dave dares Bob to tell the press about the switch. At the press conference, Dave announces a monumental plan to provide a job to every American who wants one.

Nance returns from Africa and confronts Dave for trying to frame him for crimes of which Bob and the real Mitchell are actually guilty. In retaliation against Dave, Bob reveals evidence implicating Mitchell in the scandal, which Alan admits is true. Despite talk of impeachment, Dave refuses to back off his jobs plan, while Bob quietly begins to garner support for a presidential run.

During a joint session of Congress, Dave admits that Bob's allegations are true and produces proof, provided by Alan, that shows that Bob was also involved, and that Nance is innocent. After Dave apologizes to Nance and the country, he fakes another stroke; switching places with Mitchell, he resumes his previous life. The hospital pronounces the "second" stroke as major, and Mitchell continues to lie in a coma for five more months before dying. As acting president and then president, Nance backs the jobs plan, which becomes law. Bob and several Mitchell administration officials are indicted, while Alan continues working in the White House.

Dave runs for the D.C. city council with the help of Murray and his employment agency staff. Dave is surprised one day when Ellen visits. He escorts her into his office, where they share their first kiss. Dave closes the shades to give them privacy and Duane, wearing one of Dave's campaign buttons, steps in front of the door.