38-year-old Thomas, lost the party's primary in Congressional District 2 of Florida, by just 1700 votes, to surgeon Neal Dunn.
"Congratulations to our next Congressman Neal Dunn. Together we will work to Make America Great Again. Thank you to our many volunteers who were so passionate about our conservative cause," Thomas wrote on her Facebook page after conceding her defeat.
If elected, she would have made history as the first Indian-American woman to serve in Congress. Her parents arrived in America from India in 1972.
Born in Charleston, South Carolina, Thomas has been a member of Governor Rick Scott's administration since he was sworn into office in January 2011.
She currently serves as the General Counsel at the Department of Elder Affairs where she manages and oversees the legal department of an agency that administers a USD 900 million budget.