The Washington state lawmaker had been aiming to run for whip, the No. 2 post, if there were a vacancy in that position, the source said, but Rep. Steve Scalise of Louisiana, the current House majority whip, will run for minority whip.
If she ran to maintain her position as conference chair, she would face a challenge from Rep. Liz Cheney of Wyoming, who announced her candidacy Wednesday. Sources say Cheney was gaining more and more support in the caucus for her conference bid.
Instead, McMorris Rodgers, fresh off a big victory in her competitive district, plans to run for a ranking member position on the Energy and Commerce Committee.
She was first elected to conference chair in 2012. She raised $17 million this cycle, including $2.1 million for the National Republican Congressional Committee and $9 million for members and candidates, according to the source.
McMorris Rodgers' decision was first reported by Politico.
Leadership elections are set for Wednesday. For the top position, House Majority Leader Kevin McCarthy of California and Rep. Jim Jordan of Ohio are both running for minority leader.
CORRECTION: This story has been updated to correctly identify which position McMorris Rodgers is now seeking.
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