FILE - In this Oct. 17, 2018 file photo, Republican U.S. Senate candidate John James speaks during a rally in Pontiac, Mich. The Combat veteran and businessman of Michigan is running for U.S. Senate again, this time against first-term Democratic Sen. Gary Peters in 2020. James, who ran against Democrat Debbie Stabenow in 2018, announced his candidacy on Thursday, June 6, 2019. (AP Photo/Paul Sancya)

LANSING (AP) — Republican businessman John James of Michigan announced Thursday that he will challenge first-term Democratic U.S. Sen. Gary Peters in 2020 in a key state for President Donald Trump’s re-election chances.

James, a 37-year-old African American combat veteran and CEO of an automotive logistics company in Detroit, lost to longtime Sen. Debbie Stabenow last year . But he did better than expected, considering he was a political unknown initially and the race was never prioritized as a battleground by the national GOP in what was a successful year for Michigan Democrats.

“There’s so much work to be done to heal our nation and to unify our state. I just want to help people,” James told The Associated Press in a phone interview. He called himself a “compassionate conservative, a conscientious capitalist” who “has better ideas, has more energy and has a greater ability to bring us together than what we’re seeing out of Washington.”

James said he chose to file on the 75th anniversary of the D-Day invasion that helped change the course of World War II because it is a reminder of what Americans can do when they put their differences aside.

He committed to donating a nickel from every campaign dollar he raises to charitable causes. The West Point graduate and Iraq War helicopter pilot said he got the idea from what is known in the military as the “nickel ride,” in which first-time pilots give a nickel from the year they were born to their flight instructors.

“It’s the right thing to do,” James said. “I’ve always been taught that we have to use our blessings to be a blessing to others. When you take a look at how much money is going to be spent in this 2020 election cycle, I personally feel like someone should stand up and say that we can both raise enough money to win and have enough to give to people who are need.”

Peters, 60, won election to an open seat in 2014 after serving three terms in the House. He previously was a state senator and lottery commissioner, served in the Navy Reserve — volunteering to serve again after Sept. 11 — and worked as an investment adviser.

He is one of two Democratic incumbents up for re-election in a state won by Trump, who has called James a “star” and considered nominating him as the next U.S. ambassador to the United Nations.

In a written statement, Peters said he is focused on delivering results for Michigan.

“I’ll keep working with anyone to improve life for Michiganders, whether it’s to expand training programs so everyone has the skills needed to find good-paying jobs, protect our Great Lakes or lower the cost of health care and prescription drugs,” he said.

Peters’ campaign manager circulated a memo this week pointing to the “battle-tested” senator’s tough victories across four very different election cycles and his strong fundraising. Dan Farough also criticized James for standing by Trump’s agenda “2,000%” and questioned his positions on health care and abortion.

The Peters campaign had $3 million as of March 31. James had $508,000.