Eleni Kounalakis Shifts Focus from Governor to Treasurer Bid

News Summary

California Lieutenant Governor Eleni Kounalakis has announced her withdrawal from the gubernatorial race to pursue a campaign for state treasurer in 2026. This decision follows concerns about her polling performance and fundraising challenges, as she believes she can make a more meaningful impact in managing the state’s finances. Kounalakis plans to prioritize housing affordability, fiscal responsibility, and strategic investments in her new role. With notable endorsements and previous statewide experience, she remains a key player in California’s evolving political landscape.

California Lieutenant Governor Eleni Kounalakis has officially withdrawn her candidacy for governor and announced her intention to run for state treasurer in the upcoming 2026 election. This shift comes as Kounalakis seeks to focus on California’s financial management and believes she can make a more significant impact in this role.

Kounalakis shared her decision on social media, emphasizing her agenda as treasurer which includes enhancing housing affordability, promoting fiscal responsibility, creating economic opportunities, and encouraging strategic investments in clean energy and infrastructure. These priorities reflect her commitment to addressing some of the pressing issues facing Californians today.

Initially, Kounalakis was the first prominent candidate to enter the gubernatorial race in April 2023. However, recent polling indicated she was trailing behind other contenders, especially former Representative Katie Porter. As the gubernatorial race expanded rapidly this year, her withdrawal aligns with a trend of candidates stepping back, creating opportunities for those still in the running.

Just a week before Kounalakis’s announcement, former Vice President Kamala Harris declared she would not be running for governor, which further opened the field. Despite being among the top candidates in early polling, Kounalakis faced challenges in fundraising, amassing only $100,000 in the first half of the year compared to Porter’s impressive $3 million raised in a mere three months.

The role of state treasurer is significant, as this official oversees California’s financial management. The treasurer serves on various boards responsible for managing pension systems and financing affordable housing. Kounalakis previously held the position of U.S. Ambassador to Hungary and played a notable role in the fundraising efforts for Hillary Clinton’s 2016 presidential campaign, which positions her well for this new endeavor.

Kounalakis’s family connections within California’s political fundraising networks could provide an advantage as she pivots towards the treasurer’s race. The gubernatorial candidates still in the running include other notable Democrats like Toni Atkins, Xavier Becerra, Stephen Cloobeck, Katie Porter, Tony Thurmond, Antonio Villaraigosa, and Betty Yee, along with two Republican candidates, former Fox News commentator Steve Hilton and Riverside County Sheriff Chad Bianco.

Despite her earlier ambitions for the governorship, Kounalakis’s shift to run for state treasurer indicates a strategic maneuver based on her assessment of the political landscape. She has previously won statewide office twice, which enhances her credibility as a candidate. Her decision was influenced not just by polling but also by a desire to impact California’s future more effectively.

The ongoing gubernatorial race is described as wide-open, with Kounalakis’s and Harris’s departures leaving no clear frontrunners among the candidates. The dynamics of the race are further complicated by Kounalakis’s support from prominent figures, including former House Speaker Nancy Pelosi, who expressed her endorsement in a recent interview.

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• Los Angeles Times
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• The Hill
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• Encyclopedia Britannica: Government
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• Google News: Eleni Kounalakis