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Dr. Amish Shah, who beat the choice of the party's House campaign arm, will face Jay Feely, a Republican, in a battleground district that covers parts of Phoenix.
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The measure has drawn bipartisan backing amid a public outcry against the practice, but Democrats opposed it after Republicans added a voter ID requirement.
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Democrats and Republicans are haggling about the Clarity Act, a major bill pushed by the crypto industry, as it moves closer to a Senate vote.
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The criminal referral could provide a catalyst for a prosecution of Mr. Smith, who as special counsel became a top target of the president's retribution campaign.
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House Republicans have tied their entire legislative agenda to President Trump's voting restriction measure, as he has demanded.
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Republicans stockpiled money from big donors in national groups heading into the fall campaign season, while individual Democrats have drawn on stronger voter enthusiasm.
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Republicans managed to push through legislation to fund the government through Dec. 4. But with Democrats opposed, the stage is set for a broader battle.
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 President Donald Trump said on Monday the United States would cut the number of U.S. troops deployed in Germany to 25,000, a reduction of about 9,500, in a move likely to upset both his fellow Republicans in Congress and NATO allies.
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