The American Indian Movement (AIM) was founded in 1968 by Dennis Banks and Clyde Bellecourt, two Chippewa men with long police records who were employed by the Citizens Community Centers (CCC), an anti-poverty program funded by the Office of Economic Opportunity (OEO). AIM's stated goal was to take back Alcatraz Island and other lands claimed by Native Americans, and to force the hiring and promotion of Indians by the Bureau of Indian Affairs (BIA).

AIM quickly gained a reputation for violence and lawlessness, engaging in a series of protests, sit-ins, and occupations that often turned violent. In 1972, AIM members took over the Wounded Knee Trading Post and held it for six days, causing $66,000 in damage. In 1973, they occupied the town of Wounded Knee, South Dakota, for 71 days.