Gregg withdraws as commerce nominee

Senator Judd Gregg, the New Hampshire Republican, withdrew this afternoon as President Obama's nominee for Commerce Secretary, saying he had too many policy differences on the stimulus package and the Census.

“It has become apparent during this process that this will not work for me as I have found that on issues such as the stimulus package and the Census there are irresolvable conflicts for me. Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns. We are functioning from a different set of views on many critical items of policy," Gregg said in a statement.

At a news conference on Capitol Hill, Gregg said it became clear to him that he could not be "100 percent behind the team" and that it was "his mistake" to accept the nomination.

Using a football analogy, Gregg said it would be like blocking back who only pulls out to block for every second or third play.

"I've been my own person for 30 years...It really wasn't a great fit," he said. "Bottom line, it was a bridge too far for me."

Gregg acknowledged that "to withdraw at this point is unfair in many ways," but he said staying on would have been a bigger mistake .

Gregg praised Obama for reaching out to Republicans and including diverse views in his cabinet and said he will be an effective president.

The White House response suggested that Gregg was the one who forced the divorce -- and should have known about the policy differences.

“Senator Gregg reached out to the President and offered his name for Secretary of Commerce," 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”.

Obama, himself, told The State Journal-Register newspaper in Springfield, Ill. that Gregg's withdrawal was "something of a surprise."

UPDATE: Later, he told reporters on Air Force One that he was glad Gregg "searched his heart" and changed course before he was confirmed. "Clearly he was just having second thoughts about leaving the Senate, a place where he's thrived," Obama added.

Obama also said Gregg's withdrawal won't deter him from working with Republicans.

Gregg had recused himself from voting on the stimulus, or any other matter before the Senate, while his nomination was pending.

House Republican leaders today had criticized plans for increased White House involvement in the Census, saying that if Obama didn't trust Gregg to oversee the Census, he should find another Commerce nominee. The Census will help determine political power in Washington in the next decade.

Gregg's announcement also ended the short-lived plan for New Hampshire's Democratic governor, John Lynch, to appoint Republican Bonnie Newman to the Senate.

To pave the way for Gregg's nomination, Lynch agreed to appoint a Republican to serve out Gregg's term and not change the balance of power in the Senate, and Newman agreed not to run for the office.

The Associated Press is reporting that Lynch, who spoke to Gregg several hours before the announcement, said he respected Gregg's decision to withdraw and remain in the Senate. He also thanked Newman for her willingness to serve.

Newman issued this statement, according to the Associated Press:

"I spoke with Senator Gregg this afternoon and understand that he has withdrawn as the nominee for Secretary of Commerce. As I said last week, I have the greatest admiration for Senator Gregg. I know him to be a person of extraordinary integrity and ability. I believe as Secretary of Commerce he would have served the country well in these difficult times.

"I expect Senator Gregg's decision was not an easy one nor made lightly. Let me also say how much I appreciate Governor Lynch, his confidence in me, and his steadfast devotion to the people of New Hampshire. 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."

The stunning withdrawal is the latest setback for Obama, who announced the nomination Feb. 3 and pledged to bring Republicans into his cabinet.

Tom Daschle stepped aside as health and human services secretary after questions about late tax payments. And Obama's first pick at commerce, New Mexico Governor Bill Richardson, withdrew amid an investigation of state contracts.

In a statement, Mitch McConnell, the top Republican in the Senate, said Gregg "made a principled decision to return and we're glad to have him. 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."

But Democratic Congressman Paul Hodes of New Hampshire, who plans to run for Gregg's seat in 2010, was critical.

“I am surprised and disappointed at this sudden withdrawal. Senator Gregg would take us back to the years of George W. Bush rather than moving forward with the change agenda that the American people clearly want. I will continue to work with President Obama to create jobs and rebuild our economy for the middle class.

"I will be a candidate for the United State Senate in 2010. I look forward to working every day to stand up for New Hampshire as we come together to confront the economic crisis facing our nation.”

Gregg's full statement:

“I want to thank the President for nominating me to serve in his Cabinet as Secretary of Commerce. This was a great honor, and I had felt that I could bring some views and ideas that would assist him in governing during this difficult time. I especially admire his willingness to reach across the aisle.

“However, it has become apparent during this process that this will not work for me as I have found that on issues such as the stimulus package and the Census there are irresolvable conflicts for me. Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns. 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.

“I greatly admire President Obama and know our country will benefit from his leadership, but at this time I must withdraw my name from consideration for this position.

“As we move forward, I expect there will be many issues and initiatives where I can and will work to assure the success of the President’s proposals. This will certainly be a goal of mine.

“Kathy and I also want to specifically thank Governor Lynch and Bonnie Newman for their friendship and assistance during this period. In addition we wish to thank all the people, especially in New Hampshire, who have been so kind and generous in their supportive comments.

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