White House Officials: Gregg Is Leading Candidate for Commerce Secretary

Two White House officials said Saturday that Republican Sen. Judd Gregg of New Hampshire is the leading candidate to become commerce secretary.

The officials -- speaking on condition of anonymity -- told FOX News that an announcement of Gregg's nomination could come as soon as Monday.

Gregg's appointment to the post could give Obama and his Democratic Party another seat in the Senate, clearing the way for them to pass legislation without fear of a Republican filibuster. It takes 60 votes to end a filibuster, a legislative tactic used to block measures from coming to a vote.

The choice also would provide the administration a strong ambassador to the business community in Gregg, who devised the $700 billion banking bailout package last year.

The officials also said there was no word on who New Hampshire Gov. John Lynch, a Democrat, would appoint to replace Gregg.

Lynch, a political moderate, could easily appoint a Republican, senior Democrats have told supporters in private conversation. They fret that the independent-minded Lynch is likely to appoint a "placeholder" senator who would not permanently seek the office in 2010.

Gregg faces a tough re-election in 2010. His state has shifted toward Democrats in recent years and his role in the banking rescue plan would complicate a re-election bid in a state that proudly rebukes government spending and has no state income taxes.

New Hampshire Democrats have taken two House seats, a Senate seat and control of the state's Executive Council, House and Senate since 2004. Democrats slightly outnumber Republicans on voter rolls, but the vaunted independent voters -- or "undeclared," as they are known in the Granite State -- lead both. Lynch won re-election last year with 70 percent of the vote.

Democrats already have eyed Gregg's seat as vulnerable for the right candidate. His appointment to the Cabinet could make it more difficult for the Republicans to defend.

Democrats hold a 56-41 majority in the 100-member Senate, and two independents caucus with them. The Senate seat from Minnesota remains undecided, with Sen. Norm Coleman and challenger Al Franken in a close, court-based contest.

Gregg on Friday confirmed he was under consideration as Republicans urged him to think carefully about what it would mean to the Republican Party. Gregg's spokeswoman did not have immediate comment on Saturday.

A member of a New Hampshire political family, Gregg rose through the Senate ranks to serve as chairman of the powerful Budget Committee and the Appropriations subcommittee that funds homeland security. Now in the minority, he is the ranking Republican member on the Budget Committee but still has large sway in the Republicans' response to Obama's legislative agenda.

He would be Obama's second choice to run the Commerce Department. His first pick, New Mexico's Democratic Gov. Bill Richardson, dropped out of consideration amid a grand jury investigation over how state contracts were issued to political donors.

Obama has spoken with his party's leadership on Capitol Hill about the move, which aides say could be a lost opportunity if the administration allows a Republican replacement to be named.

FOX News' Mike Emanuel and The Associated Press contributed to this report.