Washington (CNN) – Republican Party leaders are considering withdrawing financial and strategic support for Rep. Michael Grimm's re-election bid, GOP sources familiar with the discussions told CNN.
Grimm, a two-term Republican representing New York's 11th Congressional District, is the only GOP congressman from New York City and even before he was indicted Monday on 20 counts of fraud, he was facing a tough campaign to win a third term.
By withholding party help, the GOP would likely be effectively ceding the House seat to Democrats, who see the race as one of their top pick up chances this November.
A spokeswoman for the National Republican Congressional Committee (NRCC), charged with helping elect Republicans to the House, was non-committal on their support for Grimm going forward.
"We will continue to assess Congressman Grimm's re-election campaign while these legal proceedings are ongoing," said Andrea Bozek, spokeswoman for the NRCC.
Political handicappers the Cook Political Report and Rothenberg Political Report, which forecast political races, said Monday Grimm's race now leans towards the Democrats, and several GOP strategists are doubtful that Grimm can win re-election given the criminal investigation.
These GOP sources are more candid about the fact that it will likely make more sense for the Republican Party to spend its money on other competitive House races and not waste it in Grimm's high-priced New York City district.
Both parties were expected to spend millions in the race between Grimm and his Democratic challenger, Domenic Recchia Jr.
Back at work in the Capitol on Tuesday, Grimm was all smiles for the cameras, reiterating his intention to keep doing his job, and giving no indication that he intends to back away from his re-election bid.
"I am discussing things with [Republican] leadership, but the main point is I'm back to work. And that's exactly what I said I was going to do, get back to work. I'm back to work doing what the people pay me to do, represent them. So that's what's going to continue going forward,” Grimm told reporters.
Even if he did decide not to run, Grimm's name would almost certainly still be on the ballot. Sources in both parties say New York state law is very rigid. The only way to get Grimm's name off the ballot is if he dies or moves out of the district, or if he is nominated to be a judge on the New York Supreme Court, which would be hard to see happening given the federal criminal charges against him.
In light of the criminal charges, Grimm stepped down from the Financial Services Committee on Monday.
When asked by CNN if he would stand by Grimm’s re-election, all House Speaker John Boehner would say Tuesday is that he "made the right decision."
"I think all members should be held to the highest ethical standards. Mr. Grimm is under indictment. He resigned from his committee assignment. And I think he made the right decision," said Boehner.
The Democratic Congressional Campaign Committee pounced on the NRCC's unwillingness to commit to pulling support for the embattled congressman, calling on the House Republican campaign committee to demand that Grimm return financial support from the group.
"Republican Leadership promised zero tolerance for ethics problems, but that isn't stopping the NRCC leaving the door open to pour resources into indicted Congressman Michael Grimm's race," said Josh Schwerin, spokesman for the DCCC, in a statement Tuesday.
CNN Senior Congressional Producer Deirdre Walsh contributed to this report.