Kounalakis Exits Governor Race, Runs for Treasurer

California Lt. Governor Eleni Kounalakis, the first woman elected to the role, has ended her 2026 gubernatorial bid and announced a campaign for state treasurer, emphasizing her commitment to fiscal responsibility, affordable housing, and economic opportunity. Kounalakis, once a top contender with significant fundraising, trailed Democrats Katie Porter and Xavier Becerra in recent polls. Her decision follows former Vice President Kamala Harris's announcement not to enter the governor's race, further reshaping the Democratic field. Kounalakis's exit creates opportunities for other candidates to seek endorsements and donor support, particularly from House Speaker Nancy Pelosi, who had previously backed her. The governor's race remains competitive, with both prominent Democrats and Republicans seeking to succeed term-limited Gov. Gavin Newsom. Kounalakis's pivot also intensifies the treasurer's race, which already features several notable candidates.