Chao previously served as labor secretary in President George W. Bush's administration.
She was the first Asian-American woman to serve in a U.S. president's Cabinet, and she was the only member of Bush's Cabinet to serve all eight years of his presidency, according to ABC News.
Born in Taipei, Taiwan, Chao came to the U.S. at the age of 8. She is married to Senate Majority Leader Mitch McConnell.
Chao's appointment must be confirmed by the Senate.
Learn more about Chao from ABC News.