Congressman Darrell Issa is the author of the 'Protect and Grow American Jobs Act' which is seen by Indian IT companies as a business killer.
Mr Issa announced that he will not seek re-election from the 49th Congressional district of California, which he represented for 18 years.
He is the second top Republican lawmaker in the Congress to have announced his retirement, which some media outlets said is an indication of a Democratic wave for the upcoming November mid-term election.
Mr Issa has been known for introducing and pushing Congressional legislation that specifically targets Indian IT companies, especially those that use H-1B visas.
"We're going to close the loopholes, stop the outsourcing of American jobs and get our broken H-1B system back to what it was intended to be," Mr Issa said in a tweet.
"Unfortunately, loopholes in the programme have allowed a small handful of employers to game the system to displace American workers and crowd out others who legitimately need the limited slots available to recruit individuals with unique skill sets not available here at home," Mr Issa said.
Darrell Issa had managed to win in the 2016 general election with just half a percentage point.
"Throughout my service, I worked hard and never lost sight of the people our government is supposed to serve. Yet with the support of my family, I have decided that I will not seek reelection in California's 49th District," he said in a statement.
Early this week, Congressman Ed Royce, chairman of the powerful House Foreign Affairs Committee had also announced his retirement. Mr Royce is also from California.