A major contender to become California’s next governor dropped out Friday.

Lt. Gov. Eleni Kounalakis said she will run for state treasurer instead in 2026.

“The decision was not made lightly,” Kounalakis posted on X. “At this moment, I believe I can make the greatest impact by focusing on California’s financial future.”

Kounalakis had the most money in her dedicated campaign account for governor — $4.6 million. But, her indecision about remaining in the race awaiting former Vice President Kamala Harris’ decision may have slowed fundraising. She reported only $107,015 raised in 2025, well below the $3 million raised by fellow Democrat Katie Porter. Harris opted not to run.

A former ambassador to Hungary in the Obama administration, Kounalakis won two terms as lieutenant governor in 2018

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