Former Commerce Secretary nominee Sen. Judd Gregg, R-N.H., has come under scrutiny for earmarking funds to a now-defunct Air Force base. The earmarks allegedly bolstered property investments made by the senator and his brother, according to the Associated Press.
The funds in question include at least $66 million allocated for the redevelopment of the now-closed Pease Air Force Base, located near Portsmouth, N.H., into commercial and federal property, the AP reported. Gregg has invested hundreds of thousands of dollars in his brother's office projects at the Pease International Tradeport, a business development located at the former base, according to the AP, which reported that the senator has collected returns of roughly $240,000 to $650,000 on his investments.
Gregg has denied any ethics violations in directing federal money toward the projects.
"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.
Gregg's office did not return requests for comment by press time.
Most of the earmarked funds were requested by the National Guard or by the City of Portsmouth, Gregg told New Hampshire reporters during a conference call Friday.
The senator's actions likely do not constitute a significant corruption case, government professor Linda Fowler said.
"There's conflict of interest and appearance of conflict of interest," she said. "This appears to be more an example of the appearance of conflict of interest."
Fowler agreed that Gregg had probably not violated any Senate Ethics Committee rules, as earmarking is not illegal despite its sometimes unscrupulous appearance.
Gregg was President Barack Obama's second nominee for Commerce Secretary, following the withdrawal of Gov. Bill Richardson, D-N.M., but stepped down last month in light of what he termed "irresolvable differences" between himself and the administration.
It is unlikely that the withdrawal was related to concerns about the earmarked funds, Fowler said, although she said it is too early to speculate. Gregg's role in the Senate will also likely remain unaffected, she added.
"Unless other things become discovered, I don't think the level of what is being discussed at this point would cause senators to marginalize him," Fowler said.
Gregg has worked to steer millions of dollars in funds to the College during his time in the Senate, winning almost $100 million in non-shared earmarks between 1993 -- the year that Gregg started his first Senate term -- and 2003, according to a database compiled by The Chronicle of Higher Education. The recent revelations may compromise Gregg's ability to earmark funds to Dartmouth in the future, Fowler said. Public scrutiny prior to the accusations had already made it more difficult for him to do so, she said.
At the time Pease Air Force Base closed in the early 1990s, New Hampshire was in a severe economic slump, Fowler said. A majority of New Hampshire residents would likely have supported funding for the area, Fowler said.
Gregg, who was elected to the House of Representatives in 1981, served as governor of New Hampshire from 1989 to 1993 and was then elected to the Senate. Gregg has three children, all of whom attended Dartmouth -- Molly Gregg '00, Sarah Gregg '02 and Joshua Gregg '06. The senator received an honorary degree from Dartmouth in 2006.
