Eleni Kounalakis Withdraws from Gubernatorial Race

News Summary

California Lieutenant Governor Eleni Kounalakis has announced her withdrawal from the gubernatorial race, opting instead to run for state treasurer in the 2026 election. Her campaign will focus on enhancing housing affordability, promoting fiscal responsibility, and investing in clean energy. Recent polling showed her trailing other candidates, prompting this strategic shift. Kounalakis, who has strong ties in California’s political fundraising networks, aims to leverage her experience for effective financial management as state treasurer.

California Lieutenant Governor Eleni Kounalakis has officially announced her withdrawal from the gubernatorial race and will now run for state treasurer in the upcoming 2026 election. Kounalakis, a Democrat, made this decision public through her social media channels, expressing her belief that she can make a greater impact on California’s financial management in this new role.

Kounalakis has set forth an agenda for her campaign as state treasurer, with key priorities such as enhancing housing affordability, promoting fiscal responsibility, increasing economic opportunities, and making strategic investments in clean energy and infrastructure. These issues are expected to resonate with voters as California continues to navigate financial challenges.

In April 2023, Kounalakis became the first prominent candidate to declare her intention to run for governor, but recent polling indicated she was trailing behind other contenders, particularly former Representative Katie Porter. The governor’s race field has seen rapid expansions and withdrawals as candidates jockey for position, and Kounalakis’s departure reflects a trend of shifting dynamics within the competition.

Just a week prior to Kounalakis’s decision, former Vice President Kamala Harris announced that she would not participate in the gubernatorial race, leading to increased uncertainty and competition among remaining candidates. Early polling results suggested that Kounalakis placed in the top half of the gubernatorial field. However, her late fundraising efforts—raising only $100,000 in the first half of the year—compared to Porter’s dramatic $3 million in the same period, hindered her chances at establishing a robust campaign.

The role of the state treasurer is significant in California, overseeing the state’s financial management and serving on several boards responsible for managing pension systems and financing for affordable housing projects. Kounalakis previously served as the U.S. Ambassador to Hungary and played a vital role in fundraising efforts for Hillary Clinton’s 2016 presidential campaign. Her strong ties within California’s political fundraising networks may provide a solid foundation for her new campaign for treasurer.

The gubernatorial race still features several Democratic candidates, including Toni Atkins, Xavier Becerra, Stephen Cloobeck, Katie Porter, Tony Thurmond, Antonio Villaraigosa, and Betty Yee. In addition, Republicans Steve Hilton, a former Fox News commentator, and Riverside County Sheriff Chad Bianco are also in the mix. As Kounalakis and Harris step back, the race has opened considerably, with no clear frontrunners emerging yet.

Kounalakis’s supporters reportedly include notable figures such as former House Speaker Nancy Pelosi, who has demonstrated her endorsement in the recent discussions. This backing may add complexity to the dynamics of both the treasurer campaign and the remaining gubernatorial race.

With Kounalakis shifting her focus to the state treasurer role, the gubernatorial campaign landscape in California remains wide open and competitive, as candidates continue to navigate fundraising efforts and voter outreach in the lead-up to the 2026 elections. As Kounalakis refocuses her political aspirations, observers will be keen to see how her approach to financial oversight influences California’s future and its response to pressing economic issues.

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