Republican Sen. Judd Gregg withdraw his name in protest over economic stimulus package

Republican Sen. Judd Gregg withdrew his nomination to be President Obama's commerce secretary on Thursday, citing "irresolvable conflicts" over issues like the economic stimulus package and the Census.

In doing so, the New Hampshire senator became the first Cabinet-level nominee to withdraw his name in protest.

"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," Gregg said in a written statement.

Republicans have been largely unified in their opposition to a $789 billion economic stimulus bill that they say is full of government waste and won't create enough jobs to turn the economy around.

In the past week, controversy has been swirling around President Obama's plan to share oversight of next year's census, which is overseen by the Commerce Department.

Gregg, who was first elected to the Senate in 1999, also says he doesn't intend to run again in 2010. He didn't give specifics on why he didn't plan to seek another term, saying to reporters Thursday, "Sometimes, there's other things to do in life."

The White House said it regrets what it calls Gregg's "change of heart."

In a statement, White House press secretary Robert Gibbs said it was Gregg who first "reached out to the President" and offered to be commerce secretary.

Gibbs said Gregg made it "very clear throughout the interviewing process" that he could "support, embrace and move forward" with President Obama's agenda, despite "past disagreements about policies."

In the statement, Gibbs said it became clear after Gregg was nominated that he could not support some of Obama's "key economic priorities." At that point, Gibbs said, it became necessary for Gregg and the administration to "part ways."

Gregg tried to shed more light on his decision at a Capitol Hill news conference Thursday.

"I said yes. That was my mistake," he told reporters. He said he'd always been a strong fiscal conservative. "It really wasn't a good pick."

Gregg said that for 30 years he's been himself. Then, he said, he stepped into a situation -- joining the Obama administration -- where he wouldn't be.

After agreeing to become the commerce chief, Gregg said he began to sense that he was not going to be good at being something he wasn't comfortable with. He did not go into specifics.

New Mexico Gov. Bill Richardson withdrew his name for the same position of commerce secretary in January amid an ethics investigation in his state. And Tom Daschle withdrew his name for health and human services secretary over criticism about his failure to pay taxes on unreported income.

Gregg, in a written statement, said he's withdrawing his name because his and Obama's policy views are too different.

"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," he said. "Obviously the president requires a team that is fully supportive of all his initiatives."

In referencing the stimulus, Gregg, known as a fiscal conservative, made clear his distaste for the package that his fellow Republicans say is filled with wasteful spending.

Only three Republican senators have supported the spending and tax-cut plan. They were the lone members of their party who pushed a compromise bill expected to cost $789 billion and be on the president's desk in a matter of days.

Gregg was also apparently objecting to the Obama administration's plans for the U.S. Census Bureau director to report to White House senior staff as well as the Commerce Department, which oversees the bureau.

Republicans charged that such a move could politicize the once-in-a-decade event.

The outcome of the census has deep political implications, since congressional districts are drawn based on population. Many federal funds are distributed on the basis of population, as well.

Gregg's announcement also undid a carefully constructed chain of events.

The New Hampshire senator had agreed to join the Cabinet only if his departure from the Senate did not allow Democrats to take control of his seat.

New Hampshire Gov. John Lynch, in turn, pledged to appointed Bonnie Newman, a former interim president of the University of New Hampshire.

She, in turn, had agreed not to run for a full term in 2010, creating an open seat for Democrats to try and claim.

In a statement, Senate Republican leader Mitch McConnell of Kentucky 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."

Lynch said he respected Gregg's decision to withdraw and remain in the Senate. He thanked Newman for her willingness to serve.

A day after Gregg's nomination was announced, The Associated Press reported that a former staffer was under criminal investigation for allegedly taking baseball and hockey tickets from a lobbyist in exchange for legislative favors while working for Gregg.

The former staffer, Kevin Koonce, has been identified in court papers only as "Staffer F" in the sprawling corruption probe stemming from disgraced lobbyist Jack Abramoff.

Gregg said at the time that he had been told he was neither a subject nor target of the investigation, and would cooperate fully.