Gregg withdraws Commerce nomination

Sen. Judd Gregg (R-N.H.), who would have brought a bipartisan flavor to President Obama’s cabinet and circle of economic advisors, unexpectedly and abruptly withdrew his nomination Thursday, dealing yet another blow to the president’s bumpy first weeks in office.

Gregg cited irresolvable conflicts about the president’s stimulus package and a scuffle over control of the coming Census, which will take place after the 2010 elections as the impetus for the dramatic turnaround.

{mosads}”Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns,” Gregg said in a statement. “We are functioning from a different set of views on many critical items of policy.”

“Obviously the president requires a team that is fully supportive of all his initiatives,” Gregg added.

Gregg denied any aspect of the vetting process played a role in his decision to step aside.

“As a further matter of clarification, nothing about the vetting process played any role in this decision,” Gregg said. “I will continue to represent the people of New Hampshire in the United States Senate.”

Speaking to employees at a Caterpillar plant in Peoria, Ill., Obama did not comment on Gregg’s departure.

But the White House issued a strongly-worded statement Thursday afternoon slamming Gregg for backing out.

“Sen. Gregg reached out to the President and offered his name for Secretary of Commerce,” White House press secretary Robert Gibbs said in a statement. “He was very clear throughout the interviewing process that despite past disagreements about policies, he would support, embrace, and move forward with the President’s agenda.”

“Once it became clear after his nomination that Senator Gregg was not going to be supporting some of President Obama’s key economic priorities, it became necessary for Senator Gregg and the Obama administration to part ways. We regret that he has had a change of heart,” Gibbs added.

Gregg was an important factor in helping convince three Senate Republican centrists to cross party lines and back the stimulus bill. Sens. Arlen Specter (Pa.), Susan Collins (Maine) and Olympia Snowe (Maine) each voted for the measure earlier this week, giving it enough support to secure cloture.

The White House had taken steps to remove the Census from the Commerce Department’s jurisdiction, an issue that caused Republicans to cry foul. Last week, the administration announced the Census Bureau would be overseen by the White House, not the Commerce Department.

Republicans had put pressure on the White House to allow Gregg to oversee the bureau as Commerce secretary, with prominent lawmakers penning a letter to Obama Wednesday on the subject. On Thursday, House GOP conference chairman Mike Pence (Ind.) urged Obama to give Gregg the authority or withdraw his name.

Pence said he learned about Gregg’s decision as the was walking into a meeting at 4:15 Thursday afternoon.

The Republican Conference Chairman said that he was “very moved,” and called Gregg “a man of integrity” for withdrawing his name. 

Other Republicans voiced equal pleasure with Gregg’s decision.

“Sen. Gregg made a principled decision to return and we’re glad to have him,” Senate Minority leader Mitch McConnell (R-Ky.) said, calling the New Hampshire senator “a key adviser to me and to the Republican Conference.”

“Judd Gregg would have been a strong Cabinet member, but it’s good for the country and the Senate that he will continue to be a Republican senator,” Senate Republican Conference chairman Lamar Alexander (Tenn.) said.

Asked his reaction to Gregg’s withdrawal as a candidate, House Minority Leader John Boehner (R-Ohio) responded simply: “Wonderful.”

House Oversight and Government Reform Committee ranking member Darrell Issa (R-Calif.), who has been one of the most outspoken Republicans howling about the Census maneuvers, slammed Obama for his “injection of Chicago-style politics into the nonpartisan Census process.”

“I commend Sen. Gregg for his decision to stand by his principles and withdraw his name from consideration,” Issa said. “Regardless of who the president nominates to serve as Secretary of Commerce, Republicans will continue to demand a fair Census that is not manipulated by White House political operatives.”

Gregg’s home-state colleague, Sen. Jeanne Shaheen (D-N.H.), refused to immediately comment. 

Significant steps had already been taken in anticipation of Gregg’s confirmation as secretary. Gregg and New Hampshire Gov. John Lynch (D) had arrived at a deal before the senator took the post by which the Democratic governor would name a Republican to take Gregg’s seat.

Lynch tapped that replacement, former top Gregg aide Bonnie Newman, in a press conference on Feb. 3. Newman had already said she would fill out Gregg’s term and that she would not seek reelection when the seat came up in 2010.

“Kathy and I also want to specifically thank Gov. Lynch and Bonnie Newman for their friendship and assistance during this period,” Gregg said in his statement.

Lynch thanked Newman for her willingness to serve and said he respected Gregg’s decision. 

“I very much respect Sen. Gregg’s decision to withdraw and stay in the U.S. Senate,” Lynch said, thanking Newman for her “willingness to serve. She is a great public servant, who I am confident will continue to make important contributions to our state and our nation.”

Newman, who served as Gregg’s top aide when he served in the House, said she had spoken with the senator Thursday afternoon.

“I expect Sen. Gregg’s decision was not an easy one nor made lightly,” Newman said. “For me, it would have been a great honor to serve in the United States Senate, but I will continue in my own, quiet and non-political way to work on behalf of the people of New Hampshire.”

Rep. Paul Hodes (D-N.H.) had announced his intention to run for the open Senate seat, though he was considering a run even if Gregg had decided to seek a fourth term.

The Commerce slot has proven a most difficult position for Obama to fill. Gregg follows New Mexico Gov. Bill Richardson (D), who withdrew his own name after connections to a lawsuit threatened to scuttle his nomination.

— Molly Hooper contributed to this article.

— This story was updated at 5:20 p.m. 

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