PHOENIX (AP) – U.S. Rep. Jim Kolbe, a leading proponent of free trade and the only openly gay Republican in Congress, announced he won’t seek a 12th term in 2006.

Kolbe, first elected in 1984, acknowledged in 1996 that he is gay and has often disagreed with his party on gay rights issues.

Kolbe, 63, released a statement saying it was time that he and his district “walk down different paths.”

“I make this decision not out of despair or discouragement or even uncertainty about my political prospects for election,” he said. “I have both the energy and the enthusiasm for the job I do, and I am confident that I would win re-election if I chose to run.”

Kolbe said in a conference call later he didn’t have specific plans, but he had always wanted to teach or do consulting work.

Because of self-imposed Republican term limits, Kolbe will lose his position as chair of the powerful House Appropriations subcommittee on foreign operations and export financing in 2006, something that he admits factored into his decision to retire.

He said the atmosphere in Washington was also another factor.

“The mood on Capitol Hill is not a pleasant one. The mood in our country, politically, is not good,” he said. “There’s a divisiveness that I think we haven’t seen in a long time and I worry about that. I like to think that I’ve been a moderating influence on that.”

A political ally, state Sen. Toni Hellon, R-Tucson, said as a friend, she welcomed Kolbe’s decision. “But as a constituent, it’s a sad thing,” she said.

Hellon said Kolbe called her to disclose his decision. “He wants to do other things and just how long do you wait before you do that?” she said.

Kolbe’s 8th Congressional District narrowly went for President Bush in 2004 and its mix of moderates and Hispanics could improve Democratic chances of winning the seat in 2006, especially with Bush’s approval ratings dropping.

As chair of the House Appropriations subcommittee on foreign operations and export financing, Kolbe has held critical position in determining the amount of U.S. assistance to foreign nations.

One of the proverbial “cardinals” in Congress – chair of a panel that determines how much money Congress spends – Kolbe has been a strong proponent of free trade and a key backer of President Bush’s Millennium Challenge Account that rewards poor countries that show a commitment to economic and government reform.

He first was elected to Congress in 1984, when he defeated then-Rep. Jim McNulty, a Democrat.

Kolbe easily won re-election to an 11th term in 2004, capturing 61 percent of the general-election vote in a district that includes part of Tucson and the northern suburbs as well as Sierra Vista and rural areas of southeastern Arizona.

Former state Rep. Randy Graf, a conservative who challenged Kolbe in 2004, has said he plans to run again in 2006.

Kolbe said he wasn’t backing anyone, but when asked, he dismissed Graf as a viable candidate to win a general election.

“We can do better than Randy Graf,” the Congress member said.

Other Republicans mentioned as possible candidates for the seat include Pima County Supervisor Ray Carroll, former Republican National Committee member Mike Hellon, former Pima County Republican Chair John Munger and state Reps. Steve Huffman and Jonathan Paton. State Sen. Gabrielle Giffords has been mentioned as a possible Democratic candidate.