News Summary
California Lieutenant Governor Eleni Kounalakis has officially withdrawn from the gubernatorial race to focus on her campaign for state treasurer in the 2026 election. Citing her commitment to improving California’s financial landscape, Kounalakis aims to address key issues such as housing affordability and fiscal responsibility. Her departure from the governor campaign comes amidst a competitive field, opening opportunities for other candidates. With support from prominent figures like Nancy Pelosi, Kounalakis is poised to make a significant impact in the treasurer’s race.
California Lieutenant Governor Eleni Kounalakis announced that she has officially withdrawn from the gubernatorial race to pursue the position of state treasurer in the upcoming 2026 election. This decision comes as she believes her efforts could have a larger impact on California’s finances and will allow her to focus on key financial issues facing the state.
In her announcement via social media, Kounalakis outlined her priorities for the treasurer’s office, which include enhancing housing affordability, ensuring fiscal responsibility, expanding economic opportunities, and making strategic investments in clean energy and infrastructure. Her shift in focus comes amid a competitive gubernatorial race where she was trailing behind other candidates, particularly former Representative Katie Porter.
Kounalakis was the first prominent candidate to announce her bid for governor in April 2023, but recent polling data revealed she was lagging, despite being in the top half of early polls. Fundraising efforts also hindered her campaign, as she raised only $100,000 during the first half of the year, compared to Porter’s impressive $3 million within just three months.
The landscape of the gubernatorial race has shifted significantly in recent weeks. Just before Kounalakis’s announcement, former Vice President Kamala Harris declared that she would not be pursuing the governorship, creating a significant gap in the field of candidates. Kounalakis’s exit signals a continued trend of candidates withdrawing, which may create opportunities for those still campaigning, including other Democratic contenders such as Toni Atkins, Xavier Becerra, Stephen Cloobeck, Katie Porter, Tony Thurmond, Antonio Villaraigosa, and Betty Yee. Republican candidates in the race include former Fox News commentator Steve Hilton and Riverside County Sheriff Chad Bianco.
As the current state treasurer, the role Kounalakis is aiming for involves overseeing California’s financial management, which includes participating on boards that manage pension systems and financing for affordable housing. Her experience in statewide office and her prominent role as the U.S. Ambassador to Hungary add to her credibility for this position. Furthermore, Kounalakis played a key role in fundraising for Hillary Clinton’s 2016 presidential campaign, suggesting that her political connections might aid her reach in the new campaign for treasurer.
The gubernatorial race is shaping up to be wide open, especially after the exits of Kounalakis and Harris, which has left the contest without a clear frontrunner. Former House Speaker Nancy Pelosi has publicly expressed her support for Kounalakis, indicating the influence and backing she may have within the Democratic Party as she transitions to focus on the treasurer’s race. The candidates remaining in the gubernatorial running now have a refreshed opportunity to gain traction as Kounalakis pivots to her newly defined role in state politics.
Overall, while Kounalakis steps away from the race for governor, she is redirecting her ambitions toward overseeing California’s financial future as state treasurer. Her focus on fiscal issues aligns with her agenda to seek substantial changes in housing and economic policy, positioning her to potentially make a significant impact if elected.
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Author: STAFF HERE HUNTINGTON BEACH
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