Eleni Kounalakis drops out of CA governor’s race to run for a different office
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- Lt. Gov. Eleni Kounalakis exits governor's race to pursue state treasurer office.
- Kounalakis cites housing, clean energy and fiscal priorities in her decision to pivot.
- Lagging 2025 fundraising totals likely influenced campaign strategy shift.
Lt. Governor Eleni Kounalakis is out of the running for California governor next year, opting instead to run for state treasurer in the 2026 election.
Kounalakis was the first candidate to announce she would seek the governorship in the spring of 2023. She is the daughter of wealthy Sacramento developer Angelo Tsakopoulos and spent some time as president of his company, ATK Development.
She had been widely expected to drop out of the race if her friend, former Vice President Kamala Harris, had decided to run for governor. Still, with Harris out, the lieutenant governor said she believed her experience could be put to better use as treasurer.
“At this moment, I believe I can make the greatest impact by focusing on California’s financial future,” she said in a statement Friday morning. “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.”
The one-time gubernatorial hopeful’s announcement came days after finance records showed a poor fundraising showing during the first half of 2025. While Kounalakis had a healthy $4.6 million on hand, she raised just $107,000 between January and the end of June, campaign filings showed.
During campaign appearances this year, Kounalakis touted her experience running a development company and building housing. She plans to take that experience to the Treasurer’s Office.
“The fight for California Dream is centered on making it affordable to live in our state,” she said. “As a former housing developer, I know that housing costs have put homeownership out of reach for too many, let alone simply making ends meet to keep a roof over your head.”
This story was originally published August 8, 2025 at 7:53 AM.