Thanks to New Hampshire blogger Dean Barker I learned something new today about Senator Judd Gregg. According to the Associated Press,

President Barack Obama's former nominee to become commerce secretary, Sen. Judd Gregg, steered taxpayer money to his home state's redevelopment of a former Air Force base even as he and his brother engaged in real estate deals there, an Associated Press investigation found.

Gregg, R-N.H., personally has invested hundreds of thousands of dollars in Cyrus Gregg's office projects at the Pease International Tradeport, a Portsmouth business park built at the defunct Pease Air Force Base, once home to nuclear bombers. Judd Gregg has collected at least $240,017 to $651,801 from his investments there, Senate records show, while helping arrange at least $66 million in federal aid for the former base.

Sadly, this isn't unprecedented or even the most egregious example of members of Congress profiting from earmarks. Former House Speaker Dennis Hastert sold real estate for nearly $2 million in profits after he secured federal earmarks to construct the Prairie Parkway near land he owned.

What looks corrupt in politics turns out to be legal more often than not, and that seems to be the case here. The AP says Senate ethics rules do not permit senators to direct earmarks to projects "solely" in order to benefit themselves or their family members financially, but of course Gregg could point to all kinds of benefits from redeveloping the former base.

"I am absolutely sure that in every way I've complied with the ethics rules of the Senate both literally and in their spirit relative to any investment that I've made anywhere," Gregg told the AP. "These earmarks do not benefit me in any way, shape, manner financially, personally or in any other manner other than the fact that I'm a citizen of New Hampshire."

Still, one wonders whether this story prompted Gregg to withdraw his nomination for Commerce Secretary. Whatever his reasons, we're better off without him.

Members of Congress should stick to the usual form of legalized corruption and only seek earmarks that would personally profit their large campaign contributors.

No one raises ethical concerns about that behavior. As a bonus, donors who stand to gain from the earmarks may go the extra mile during the incumbent's next tough campaign.

There's more...

This statement from the office of Judd Gregg is shocking, to say the least.

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.

This is strange for so many reasons. It's hard to believe that the Republican Gregg, who has been in public office for three decades and who is the son of a Governor, didn't know what he was getting himself into by accepting a position in the cabinet of an administration of a Democrat. Why these policy differences cropped up now, weeks into the process, instead of in the period leading up to Gregg's selection and acceptance of the President's offer is difficult to understand.

But more as we hear it...

Update [2009-2-12 17:5:19 by Jonathan Singer]: The statement from White House 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”.

Update [2009-2-12 17:11:19 by Todd Beeton]:More from Gregg (via Politico):

Judd Gregg tells Politico’s David Rogers: “I couldn’t be Judd Gregg and serve in the Cabinet. I should have faced up to the reality of that earlier.”

Gregg said the Census was not a major factor in his decision – that the bigger factors were his background as a fiscal conservative and independence. He said he made the White House aware of his concerns as he wrestled with the decisions over the last week. “It’s been very difficult,” he said.

“The fault lies with me,” Gregg said, refusing to discuss any conversations he has had with Obama himself. Asked if he felt the decision would be an embarrassment for the president, Gregg said, “I may have embarrassed myself but hopefully not him.”

Update [2009-2-12 17:26:10 by Todd Beeton]:Ron Brownstein on MSNBC: "It will be interesting to see what this means for 2010. This reaffirms Judd Gregg's partisanship in a state trending the other way."

Judd Gregg is currently holding a newsconference. He's very complimentary toward Obama and criticizing himself. He has just promised to carry Obama's water in the Senate. Can I hold you to that?

"This is simply a bridge too far for me. The president asked me to do it. I said yes. That was my mistake, not his."

"I want to express my admiration for this president."

Update [2009-2-12 17:33:19 by Todd Beeton]:"Will I run in 2010? Probably not."

Update [2009-2-12 17:33:19 by Todd Beeton]:Gregg just denied having reached out to the administration for the job, which Robert Gibbs said he had in the statement above. "Everybody has a different recollection of what happened."

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What position do you give the man who has already served as Congressman, Ambassador to the United Nations, Secretary of Energy, and Governor? Apparently Secretary of Commerce.

President-elect Barack Obama has chosen New Mexico Gov. Bill Richardson to be commerce secretary, adding a prominent Hispanic and one-time Democratic rival to his expanding Cabinet.

Obama planned to announce the nomination after Thanksgiving, according to a Democratic official familiar with the discussions. The official was not authorized to speak publicly about the negotiations and did so on condition of anonymity.

I have been getting the same questions over and over in recent days: What exactly does the Secretary of Commerce do? The definition from Wikipedia -- that the department it runs is "concerned with business and industry" -- doesn't do much to clear up the question. Here's a better answer from the AP:

The department promotes American business in America and abroad. It also issues patents and trademarks and protects intellectual property.

According to their own website, the current secretary, Carlos Gutierrez, has about 38,000 workers and an almost $7 billion budget.

The Commerce Department also crafts telecommunication and technology policy.

I don't know too much about Richardson's stances and experience vis a vis the promotion of American business and technology, but considering the economic growth in New Mexico during his time as the state's Governor -- particularly the growth in the fields of tourism and entertainment -- as well as his background in working with the bureaucracy (in both the state level and the federal level), this comes off as a solid pick.

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