Warner Prepares to Take On National Role

"If he gets in, there is a real possibility that he emerges as the primary alternative to Hillary Clinton, and there's a strong argument to be made that he would be the party's strongest conceivable general election candidate," said Democratic strategist Jim Jordan, who was Kerry's first presidential campaign manager.

Grover Norquist, the president of Americans for Tax Reform, disagreed.

Warner "lied his way into office by promising not to raise taxes and once in office raised taxes," Norquist said Friday. "That puts him in the cross hairs of the one thing Republican politicians know how to do: crush tax-increasing Democrats."

Warner has not said whether he is going to run for president or whether he will challenge U.S. Sen. George Allen (R-Va.), who is up for reelection next year and is considering a bid for the White House. Allen's campaign manager, Jason Miller, said: "Whether Mark Warner is gearing up to run for the U.S. Senate or the presidency, it won't change how we're preparing for the senator's reelection."

Warner has raised millions for One Virginia, which reported a balance of $1.6 million as of April 1. But federal law prohibits the governor from spending money raised in his state PAC on federal political activity. Virginia does not put limits on campaign contributions from individuals or corporations.

Warner's new PAC will be a "federal leadership committee," a precursor to a formal exploratory committee, which would be needed to officially campaign for office.

"He's not ruling out any of his political options," Reiley said. "He'll be traveling and contributing to [other] federal candidates."

Steve Jarding, Warner's 2001 campaign manager, called the new PAC "the logical next step" for Warner. Jarding, who is finishing a book on the politics of rural America, said Warner is smart to be positioning himself as a critic of Democrats who have written off southern states.

"If Democrats don't figure out how to crack the South, we're never going to get there," Jarding said. "If that's where Warner's coming from, I'm not sure it's a bad thing."

Staff writer Dana Milbank contributed to this report.