Defense officials confirmed to ABC News that Tata will assume acting duties as Deputy Undersecretary of Defense for Policy.
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"Mr. Tata withdrew from consideration before the Senate Armed Services Committee his nomination to be the Undersecretary of Defense for Policy. He has been designated as the official Performing the Duties of the Deputy Undersecretary of Defense for Policy reporting to the Acting Undersecretary of Defense for Policy Dr. James Anderson. He looks forward to continuing to help implement the President's National Security agenda," the official said.
Sources tell CNN, President Donald Trump planned to place Tata in a position that didn't require a confirmation hearing after being told there was not enough bipartisan support.
Last week, the Senate Armed Services Chairman Jim Inhofe said no one knew enough about Tata to confirm his position. His hearing was expected to be tough.
"There are many Democrats and Republicans who didn't know enough about Anthony Tata to consider him for a very significant position at this time," Inhofe told CNN.
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There are reports circling Tata that he made a number of Islamophobic and offensive comments, as well as promoted conspiracy theories.
House Armed Services Chairman Adam Smith also expressed opposition to the decision in a Sunday statement.
"Our system of checks and balances exists for a reason and the Senate's role in the confirmation process for administration appointees ensures individuals at the highest levels of government are highly qualified," Smith said.
He previously served as a special adviser to the defense secretary. In 2010, Tata served as the Superintendent of the Wake County Public School System in North Carolina.