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The former head of the Center for American Progress was criticized for tweets disparaging some lawmakers. President Biden said in a statement he accepted Tanden's request.
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Nearly two dozen of the president's nominees await confirmation in the deeply divided Senate.
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The centrist Republicans' opposition to Neera Tanden taking the helm of the Office of Management and Budget comes after one Democratic senator also said he would not support her confirmation.
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The West Virginia Democratic senator said Tanden's past statements attacking lawmakers "will have a toxic and detrimental impact" on her ties with Congress if she were to lead the budget office.
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President Biden's pick to lead the Office of Management and Budget apologized for previously insulting Republicans and promised to work in a bipartisan manner if confirmed.
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Tanden would be the first woman of color to lead the Office of Management and Budget. But Republicans are pushing back on her because of the partisan fights she's waged on Twitter and elsewhere.