In 2008, Terry faced another primary challenge from Steven Laird, defeating him by 84% to 16%. He also faced a rematch in the general election against Jim Esch. The election was concurrent with the 2008 presidential election. Nebraska is one of two states that uses the Congressional District Method in presidential elections: the winner of the statewide popular vote receives two electoral votes and the winner in each congressional district receives one vote. The Democratic nominee, Barack Obama, therefore targeted the district in case the Electoral College was otherwise tied. That effort made Terry even more vulnerable. "CQ Politics" forecast the race as 'Leans Republican', "The Cook Political Report" ranked it 'Republican Toss-Up' and "The Rothenberg Political Report" rated it 'Toss-Up/Tilt Democratic'. In response, Terry appealed to Obama supporters, dubbing them "Obama-Terry voters", and emphasizing that he would work with Obama if he won the election. National Committees and outside groups spent millions of dollars on the race and Terry's supporters tried to paint Esch as a "liberal", a supporter of gay marriage and insufficiently pro-life. Ultimately, Terry was reelected by just 52% to 48%.