Sen. Judd Gregg withdrew his nomination to become Commerce secretary Thursday amid a political flap over the Census Bureau and congressional consideration of a $789 billion stimulus bill.

White House Press Secretary Robert Gibbs issued a statement expressing regret about Gregg’s change of heart and saying it was a job that Gregg had sought. “Senator Gregg reached out to the President and offered his name for Secretary of Commerce,” Gibbs said.

Gregg 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.

When it became clear that wouldn’t happen, it “became necessary for Senator Gregg and the Obama administration to part ways,” Gibbs said.

Black and Hispanic leaders had taken issue with Gregg’s nomination because he had opposed President Bill Clinton’s request for additional funding for the 2000 census and because he had voted in favor of abolishing the Commerce Department.

A senior White House official told Congressional Quarterly last week that a decision had been made to have the Census Bureau director report directly to the White House, a move that appeared to assuage black and Hispanic leaders.

But it sparked outrage from House Republicans, who argued that the politically delicate process of counting Americans and collecting data on numerous aspects of their lives would be moved from the policy realm and into the political realm if the Census director were to report to the West Wing of the White House and Chief of Staff Rahm Emanuel .

Gregg, R-N.H., said the Census flap was only “a slight catalyzing issue,” and not the reason for his withdrawal.

In a statement, Rep. Barbara Lee , D-Calif., chairwoman of the Congressional Black Caucus, said Gregg’s decision was the right one.

“When Sen. Gregg was first nominated, members of the CBC expressed concerns about his commitment to core functions of the Commerce Department like the census and minority- and women-owned businesses,” Lee said. “In his statement today, Gregg expressed ‘irresolvable conflicts’ on these very same issues. In light of this, we feel that his decision to withdraw is in the best interest of all parties.”

Gregg’s chances of being confirmed were strong, and his withdrawal was a surprise to colleagues and House members.

But ultimately, he appeared reluctant to take a job stripped of one of its key functions and to be in the position of defending stimulus legislation that most Republicans will not support.

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