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Judd Gregg withdraws commerce secretary bid

02/18/09 12:22 PM EST

By Julie Mason
Examiner White House Correspondent 2/13/09

Citing disagreements with the administration over control of the census and the direction of the economic stimulus package, Republican Sen. Judd Gregg of New Hampshire abruptly withdrew as President Obama’s nominee to head the Commerce Department.

“We are functioning from a different set of views on many critical items of policy,” Gregg said in a statement citing “irresolvable conflicts.”

At issue for Gregg was a plan announced by the White House last week to strip the 2010 census from the commerce secretary’s control and have the U.S. Census Bureau report directly to White House Chief of Staff Rahm Emanuel.

White House press secretary Robert Gibbs noted in a statement that Gregg approached Obama about the commerce position and “offered his name.”

“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,” Gibbs said. “We regret that he has had a change of heart.”

Among other things, the results of the 2010 census will be used for congressional redistricting and distributing funds for federal entitlement programs. Some minority groups had complained about the Republican Gregg presiding over the census. Later, Republicans were sharply critical of the White House plan to assume more control of the process.

Republicans also mounted a strenuous opposition to Obama’s stimulus package, creating an awkward scenario for Gregg. Earlier this week he abstained from voting on the program in the Senate.

Senate Republican leader Mitch McConnell of Kentucky hailed Gregg’s withdrawal as a principled stand and welcomed him back to Congress.

“Sen. Gregg made a principled decision to return, and we’re glad to have him,” McConnell said. “He is among the smartest, most effective legislators to serve in the Senate — Democrat or Republican — and a key adviser to me and to the Republican Conference. It’s great to have him back.”

Obama last week nominated Gregg to his Cabinet, saying at the White House that the two did not agree on every issue, “but we agree on the urgent need to get American business and families back on their feet”

The Granite State senator would have been the third Republican in Obama’s Cabinet, along with Defense Secretary Robert Gates and Transportation Secretary Ray LaHood.

Instead, Gregg became the second Commerce nominee to withdraw and the fourth high-profile Obama pick to bow out before confirmation. New Mexico Gov. Bill Richardson, Obama’s first choice for commerce, stepped down amid a federal investigation of his campaign contributions.

Also among the recently departed are former Senate leader Tom Daschle, who was to head Health and Human Services, and Nancy Killefer, who was to be Obama’s chief performance office. Both had problems with their taxes.

In announcing his withdrawal, Gregg called Obama’s nomination “a great honor” and praised the president’s interest in working with Republicans.

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