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The admission from the married Republican, Tony Gonzales, comes after a House panel launched an ethics investigation.
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The Texas Republican, who is married with six children, said the relationship with married staff member Regina Santos-Aviles, who died by suicide last year, was a "mistake" and a "lapse in judgement".
"I take full responsibility for my actions," Gonzales, 45, told a podcast.
His admission came hours after a House of Representatives panel launched an ethics investigation into the relationship, and ahead of a primary run-off election. Gonzales had previously dismissed the allegations as "blackmail" and a "co-ordinated" attack to unseat him.
The primary race to decide whether Gonzales can remain as the congressional district's Republican candidate is headed towards a May run-off after neither Gonzales nor rival Brandon Herrera crossed the 50% vote threshold earlier this week.
Whoever becomes the party's nominee will stand in November's midterm election. The district, which runs along the US-Mexico border, is heavily Republican-leaning.
Gonzales was endorsed by US President Donald Trump before the affair allegations surfaced.
The lawmaker is now facing growing calls for his resignation, including from fellow Republicans. Among them are South Carolina Congresswoman Nancy Mace, who has accused him of "predatory behaviour".
Santos-Aviles died in September 2025, after setting herself on fire near her home in Uvalde, Texas. The medical examiner ruled her death a suicide, according to the BBC's US partner CBS News.
Gonzales told conservative podcaster Joe Pags in an interview released on Wednesday that Santos-Aviles' death had nothing to do with the affair, saying she was "thriving" at work.
"I had absolutely nothing to do with her tragic passing," he said. "And, in fact, I was shocked just as much as everyone else."
The House Ethics Committee announced on Wednesday that it was launching an investigation into whether Gonzales "engaged in sexual misconduct" towards one of his employees.
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