Nancy Pelosi will step down as Speaker of the US House of Representatives but remain in Congress.

WASHINGTON, (Reuters) - U.S. House Speaker Nancy Pelosi, the first woman to hold the powerful position, said Thursday she will step down as Democratic leader of the House as her allies prepare to pass the torch to Representative Hakeem Jeffries.

 Pelosi, an 82-year-old liberal from California who has served two terms as Speaker of the House, said she will remain in Congress, representing San Francisco, as she has done for 35 years. She made the announcement a day after Republicans gained a slim majority in the House following last week's midterm elections.

 Jeffries, from New York, would be the first Black legislator to lead one of the major parties' caucuses in Congress. The current House No. 2 Democrat, Majority Leader Steny Hoyer, endorsed Jeffries for the party leadership position and said he would not seek a leadership post in the next Congress either.

 In a statement, President Joe Biden called Pelosi "the most important speaker in the history of the House of Representatives."

 Pelosi received applause from her fellow Democrats as she took her seat in the chamber to make the announcement and during her remarks. Calling the House chamber "sacred ground," Pelosi recalled visiting the Capitol for the first time as a child when her father was sworn in as a member of the House.

 She mentioned having worked with three American presidents – Republican George W. Bush and Democrats Barack Obama and Biden – but did not mention Republican President Donald Trump, who was impeached twice by the House under her leadership. However, she alluded to the January 6, 2021 attack on the Capitol by Trump supporters.

 "American democracy is majestic, but it is fragile. Many of us here have witnessed its fragility firsthand, tragically in this chamber. And therefore, democracy must always be defended against forces that wish to undermine it," Pelosi said.

 Pelosi also noted the increase in women and minority lawmakers since she joined the House in 1987.

 Republicans are expected to gain control of the House on Wednesday following last week's congressional elections, giving them a narrow majority in the House that will allow them to block Democratic President Joe Biden's legislative agenda. Democrats retained control of the Senate.

 Pelosi played a central role in passing Democrat Biden's legislative agenda in Congress, as she had previously done for Obama. She helped pass the healthcare law signed by Obama in 2010, as well as major infrastructure expansions and climate spending under Biden. She has been a constant target of criticism from American conservatives.

 Pelosi has been under pressure in recent years from younger House Democrats to relinquish power. She was the highest-ranking and most powerful elected woman in United States history until Kamala Harris became vice president in January 2021. The Speaker of the House is second in the line of succession to the presidency.

 In recent days, Pelosi said that the October 28 attack on her husband Paul by a politically motivated intruder wielding a hammer at their San Francisco home, as well as other factors, would affect her decision to maintain her leadership role.

 House Democrats are scheduled to vote on their leaders on November 30.

 On Wednesday, House Republicans offered initial support for Kevin McCarthy to serve as Speaker when the next Congress is sworn in on January 3.

 Jeffries, 52, would announce a new generation of leadership for the Democrats. Democratic leader James Clyburn, 82, said he planned to remain in leadership but didn't know what position he would hold.

 Biden turns 80 on Sunday. The aging leadership of the Democratic Party has raised questions about its next generation, even as Americans live longer.

 Pelosi was first elected to the House in a special election and steadily rose through the ranks, securing leadership positions before winning her first term as Speaker of the House in 2007.

 She first served as Speaker from 2007 to 2011, when Democrats faced opposition to the Iraq War for control of the House. She returned as Speaker in 2019, when Democrats faced a wave of opposition to Trump to gain control of the House, and was re-elected as Speaker in November 2021.

 Republican control of the House, projected on Wednesday, gives that party not only the ability to control Biden's agenda, but also to launch politically damaging investigations against his administration and family.

 McCarthy, also from California, currently serves as the Republican leader in the House and will face a House-wide election early in the new year. It was still unclear whether he would garner enough support from other Republicans to win the presidency.