Eleni Kounalakis Withdraws from Gubernatorial Race for Treasurer

News Summary

Lieutenant Governor Eleni Kounalakis has withdrawn from the race for California governor to run for state treasurer in the 2026 election. Citing the importance of managing California’s finances, Kounalakis aims to focus on housing affordability, fiscal responsibility, and clean energy investments. Her decision follows a trend of candidates adjusting their campaigns as the gubernatorial race expands. Kounalakis’s well-connected background and experience in statewide office positions her as a strong candidate for treasurer in a competitive election landscape.

California – Lieutenant Governor Eleni Kounalakis has officially withdrawn from the race for governor and plans to run for state treasurer in the upcoming 2026 election. Kounalakis announced her decision through a social media post, citing her belief that focusing on California’s financial management would allow her to make a more significant impact on the state’s future.

In her new role as state treasurer, Kounalakis intends to prioritize issues such as enhancing housing affordability, promoting fiscal responsibility, and fostering economic opportunity. Additionally, she aims to support strategic investments in clean energy and infrastructure. The state treasurer is responsible for overseeing California’s financial management, serving on boards that handle pension systems and financing for affordable housing initiatives.

This development marks a notable shift in Kounalakis’s political strategy. She was the first high-profile candidate to launch a campaign for governor in April 2023. However, recent polling indicated that she was trailing behind several other candidates, most notably former Representative Katie Porter. As the gubernatorial field has rapidly expanded, Kounalakis’s exit aligns with a trend of candidates either withdrawing or announcing their campaigns, thus reshaping the dynamics for remaining contenders.

Notably, just a week before Kounalakis’s announcement, former Vice President Kamala Harris declared she would not enter the gubernatorial race, creating a void in the contest for the state’s highest office. Early polling had initially placed Kounalakis in the top half of the gubernatorial field. However, her fundraising efforts were delayed, as she raised only $100,000 in the first half of the year compared to Porter’s impressive $3 million within three months.

Kounalakis is no stranger to state-wide office; she has won election to two such positions previously, including her current role as lieutenant governor. Her background also includes serving as the U.S. Ambassador to Hungary and playing a crucial role in fundraising for Hillary Clinton’s 2016 presidential campaign. Her well-connected family within California’s political fundraising network may provide a significant advantage as she embarks on her campaign for state treasurer.

The gubernatorial race currently features a variety of other Democratic candidates still vying for the position; these include Toni Atkins, Xavier Becerra, Stephen Cloobeck, Tony Thurmond, Antonio Villaraigosa, and Betty Yee. On the Republican side, the candidates competing for the governorship are former Fox News commentator Steve Hilton and Riverside County Sheriff Chad Bianco.

The landscape of the gubernatorial race is notably wide-open, especially following Kounalakis’s decision to withdraw and Kamala Harris’s announcement not to run. While Kounalakis had garnered support from prominent figures, including former House Speaker Nancy Pelosi, her departure has left the path forward uncertain for the remaining candidates.

Kounalakis’s pivot to running for state treasurer reflects strategic considerations that align more closely with her goals of impacting California’s financial future. Her leadership experience and established connections within the state’s political circles will likely play a significant role in her new campaign. As California prepares for the 2026 election, the shifting dynamics indicate a competitive race ahead for both gubernatorial and treasurer candidates.

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