In what President Obama characterized as “a bit of a surprise,” Republican Sen. Judd Gregg of New Hampshire walked away from his nomination as Commerce Secretary today. Gregg is the second nominee to withdraw his name for the same cabinet slot, following New Mexico Gov. Bill Richardson’s withdrawal last month. 

Many outlets are emphasizing the U.S. Census as a likely bone of contention between Gregg and President Obama. Sen. Gregg voted in 1995 to abolish the U.S. Department of Census; the administration move responsibility for the census directly to the Executive Office and away from the U.S. Department of Commerce to avoid conflict, particularly since the outcome of the next census is expected to result in the re-gerrymandering of congressional districts.

However, the economic stimulus bill has also been cited as an additional factor in Gregg’s decision to withdraw from the nomination. Gregg had already stepped aside from the Troubled Assets Recovery Plan oversight board and recused himself from voting on the stimulus bill since these could be conflicts of interest for a Commerce Secretary nominee. He also actively sought the role of Commerce Secretary, indicating he would support President Obama’s policy; Gregg’s statement today, though, indicated he did not feel he could support the president’s economic policies wholeheartedly.

The White House issued a rather blunt statement about Gregg’s withdrawal:

THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release February 12, 2009

STATEMENT FROM PRESS SECRETARY ROBERT GIBBS

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

Some have noted that the announcement itself was timed in a manner suggesting political gamesmanship at play. Gregg made his announcement today at the same time President Obama was beginning a speech in Peoria, Ill. today about the economic stimulus package.

It should be noted, too, that a final vote on the stimulus package is in the offing; the previous Senate votes for cloture and passage of the Senate version of the bill passed on a 61-37 basis, along party lines, with Democrats maintaining a slim margin. Although Gregg’s likely vote against the stimulus package is not enough to stop the bill, his vote could provide impetus for the few moderate Republicans supporting the bill to reconsider their vote.

The dust hasn’t yet settled on this episode and already speculation has begun about the next possible candidate for this cabinet slot. Software security firm Symantec CEO John Thompson has already been mentioned as a possible nominee by some news outlets. Chatter about Gregg has also ramped up; he indicated that he may not run for reelection in 2010, leaving his seat in the Senate open to question.