In the 2004 federal election, Smith campaigned as a Conservative candidate in the north Winnipeg riding of Kildonan—St. Paul. She had previously been nominated as a candidate of the Canadian Alliance, where she was the Manitoba organizer for Stockwell Day's bid for leadership, before that party merged with the Progressive Conservatives in 2003–04. Smith narrowly defeated Liberal candidate Terry Duguid, 13,582 votes to 13,304. Smith was named Manitoba caucus chair, giving her a seat on the Conservative Party's Planning and Priorities Committee.