Barack Obama’s making good on his promise to work with both sides of the political aisle. The president has confirmed that he plans to name Republican Sen. Judd Gregg of New Hampshire as his Commerce Secretary, a slot left vacant after Bill Richardson stepped down amid an investigation into his management of state contracts.

While some Democrats had hoped New Hampshire Gov. John Lynch, who appoints Gregg’s replacement, would pick a Democrat to fill Gregg’s abandoned Senate seat, thus giving them more power on the Hill, that scenario went up in smoke last night. As part of his deal with President Obama, Gregg said he would only accept the job if Lynch picked a Republican. And the governor agreed. The move may be more shrewd on Obama’s part than some think — with Gregg, a well-respected politician, on his side, Mr. Obama can hope that backroom persuasions and trust will help him shore up Republican support, something that goes far further than a simple Senate seat.

Gregg, whose political career began in 1980 as a Representative, reportedly has strong ties in the business community, and his lengthy career, including a stint as New Hampshire’s governor, provide him with the budget expertise needed during these troubled financial times. Some women’s activists, however, may be upset to learn that Gregg last week voted against the Lilly Ledbetter Bill, which makes it easier for victims of pay discrimination to sue for their rightful wage.

On a related note, The New York Times reports that Gov. Lynch has been leaning toward appointing centrist Republican Bonnie Newman to replace Gregg in the Senate.