Lt. Gov. Eleni Kounalakis, the first boldfaced name to jump into the 2026 governor’s race more than two years ago, has dropped out and will run for state treasurer instead.

“At this moment, I believe I can make the greatest impact by focusing on California’s financial future,” she said in a statement Friday. “As State Treasurer, I will bring a deep commitment to fiscal responsibility, economic opportunity, and strategic investment in our state’s priorities — from affordable housing and clean energy to infrastructure and education.”

Her decision comes at an odd moment in the campaign for California’s top office. Just last week, former Vice President Kamala Harris announced that she would not run for governor next year, seemingly cracking the unsettled race wide open ahead of the June

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