What's Happening?
Lt. Gov. Eleni Kounalakis has announced her withdrawal from the 2026 California governor's race, opting instead to run for state treasurer. Kounalakis, who was the first major candidate to enter the race, cited her desire to focus on California's financial future as the reason for her decision. Despite her early entry, Kounalakis struggled to gain traction in a crowded field of Democratic candidates, including former U.S. Rep. Katie Porter and former Los Angeles Mayor Antonio Villaraigosa. A recent poll showed her with only 3% support. Kounalakis plans to leverage her experience in real estate development to address housing affordability if elected as treasurer.
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Why It's Important?
Kounalakis's decision to exit the governor's race and pursue the treasurer position could reshape the dynamics of the 2026 election. Her withdrawal opens up the field for other Democratic candidates, potentially altering campaign strategies and voter support. As treasurer, Kounalakis aims to focus on fiscal responsibility and strategic investments in housing, clean energy, and infrastructure, which could have significant implications for California's economic policies. Her emphasis on housing affordability addresses a critical issue in the state, potentially benefiting residents facing high living costs.
What's Next?
With Kounalakis out of the governor's race, remaining candidates may adjust their campaigns to capture her supporters. The focus will likely shift to fundraising and policy differentiation as the primary approaches. Kounalakis's campaign for state treasurer will likely emphasize her experience and plans for economic development, particularly in housing. The outcome of her bid could influence California's financial strategies and priorities in the coming years.
