By Bob Benenson, CQ Staff

Bill Richardson , the two-term governor of New Mexico, is cutting short his bid for the 2008 Democratic presidential nomination, the Associated Press reported Wednesday evening, and will make an official announcement of that intention on Thursday. This initially conflicted with an NBC News report that Richardson is not dropping out, but NBC subsequently joined other news sources in confirming the story.

But Tom Reynolds, a spokesman for Richardson’s presidential campaign, told CQ Politics that the campaign is not commenting on the reports.

Richardson’s change in plans came on the heels of the nominating campaign’s two kickoff events, in which he fell well short of seriously competing. He earned just 2 percent of the county convention delegates allotted in the Iowa Democratic caucuses Jan. 3, won by Illinois Sen. Barack Obama , and just 5 percent in Tuesday’s primary in New Hampshire, won by New York Sen. Hillary Rodham Clinton . In both contests, Richardson also finished well behind the third top-tier contender, former North Carolina Sen. John Edwards , who finished second in Iowa and third in New Hampshire.

Richardson lacked the money to finance television ads in New Hampshire ahead of the primary. He ranked seventh in overall fundraising among candidates from both parties as of Sept. 30, the latest for which official figures from candidates are available, reporting $18.7 million in receipts with $5.8 million cash on hand. In contrast, Clinton reported $50.5 million on hand as of that date, and Obama reported $36.1 million on hand.

Yet Richardson, addressing supporters after the New Hampshire primary Tuesday, did not give any strong hint that he was reconsidering his candidacy. He seemed to point to a bid for at least regional standing in Nevada’s Democratic caucuses Jan. 19, as the only candidate from the Mountain West. “As we go West, this fight goes on,” Richardson said.

At issue is the apparent end of a campaign that began with intriguing possibilities. The 60-year-old Richardson, who entered the presidential contest fresh off a landslide re-election in 2006, has had a long and versatile career in public life that included stints as a U.S. House member, U.S. ambassador to the United Nations, U.S. Energy secretary and ad hoc envoy to foreign hot spots prior to his 2002 election as governor. Richardson, who is mainly of Mexican ancestry, also gained distinction as a serious candidate to become the nation’s first Hispanic president.

Richardson surprised some observers, however, by eschewing an effort to galvanize a base among the Democrats’ growing and increasingly influential Hispanic constituency, instead emphasizing his extensive resume in making the case — without success — that his broad experience makes him the Democratic candidate who is most qualified to serve in the White House.

Richardson has been considered a potential top-tier candidate for the Democrats’ vice presidential nomination or a major Cabinet position should his presidential hopes fail. Should Richardson drop out, it would also renew speculation about whether he might then drop in to this year’s Senate race in New Mexico for the seat left open by retiring six-term Republican Pete V. Domenici — though such a move, at this point, might displace Democratic Rep. Tom Udall , who has rallied the support of the Democratic establishment for his bid to succeed Domenici, and possibly the several Democrats who already have entered the race for Udall’s 3rd District House seat.

Udall had initially opted out of the Senate race — in part because of uncertainty over whether Richardson was in the presidential race to stay — and Democratic insiders say his decision to enter the contest was based on an iron-clad promise that Richardson would not jump in.

New Mexico political analyst Joe Monahan said it was unlikely Richardson would change his mind and enter the Senate contest, but that it was not an impossibility. “This has been such a crazy year, I don’t think you can rule anything out,” he said, referring to a campaign year in which the governor has been running for president, the state’s senior senator is retiring, and all three of the state’s House seats are open because the incumbents — Udall and Republicans Heather A. Wilson and Steve Pearce — are running for the Senate.

Candidates have until Feb. 12 to file petitions for the Senate race, and speculation about Richardson will continue until the deadline passes, Monahan said.

First posted Jan. 9, 2008 8:49 p.m.