President Gerald R. Ford, Jr., a former House colleague, appointed Mizell as Assistant Secretary of Commerce for the Economic Development Administration, a post he held from March 1975 to May 1976. In 1976, Mizell challenged Neal again. He criticized the Democrat for not owning a home in the district, calling him a "soft on defense" liberal that changed positions regularly on economic issues. Neal called his opposition "an out-of-state candidate, being financed with out-of-state money and being staffed with out-of-state people for the benefit of out-of-state interests." The race attracted much attention; according to "The Winston-Salem Journal", "In Washington, home of the national Republican and Democratic parties and a variety of political splinter groups, the Neal-Mizell contest is seen as one of the key congressional races in the country. The groups are proving their interest by sizeable contributions of money and service to the two candidates." Both candidates charged the other with being a Washington insider. "The Washington Post" considered the race "a toss-up." Mizell ran on economic issues, and former governor of California Ronald Reagan came to Winston-Salem in October to speak at a fundraiser for him. Mizell lost, 83,129 (45.7 percent) to 98,789 (54.3 percent). Neal, a supporter of the Democratic presidential nominee Jimmy Carter, polled almost the same raw vote as Mizell had four years earlier, when he was running on the Nixon–Agnew slate.