California Lt. Governor Eleni Kounalakis has announced that she is ending her campaign to run for governor in 2026.

In a statement, Kounalakis said she has decided to run for state treasurer instead.

"This decision was not made lightly," Kounalakis said Friday. "At this moment, I believe I can make the greatest impact by focusing on California's financial future."

She added, "As State Treasurer, I will bring a deep commitment to fiscal responsibility, economic opportunity and strategic investment in our state's priorities."

The state's first woman to be elected lieutenant governor, Kounalakis was the first to throw her hat into the ring for the 2026 governor's race, announcing her campaign in April 2023.

The lieutenant governor's new campaign has already caused a shakeup in the race for state treasurer. Libby Schaaf, former mayor of Oakland, announced Friday afternoon that she was ending her campaign for treasurer and was endorsing Kounalakis.

"It has been a privilege to share my vision for using the Treasurer's financing powers to tackle our urgent housing and climate crises, and the potential for the Treasurer's early wealth-building programs to provide every Californian child with an opportunity-rich future," Schaff said on X (formerly Twitter). "I believe Lieutenant Governor Kounalakis shares this vision."

Kounalakis' announcement comes one week after former Vice President Kamala Harris announced she would not run for California governor, following months of speculation of a potential campaign after losing last year's presidential election.

Over a dozen candidates have announced their intentions to succeed Gov. Gavin Newsom as leader of the nation's most populous state. Newsom cannot seek re-election in 2026 due to term limits.

On the Democratic side, declared candidates include former Secretary of Health and Human Services and former California Attorney General Xavier Becerra, former member of Congress and U.S. Senate candidate Katie Porter, State Superintendent of Public Instruction Tony Thurmond and former Los Angeles mayor Antonio Villaraigosa.

For the Republican nomination for governor, Riverside County Sheriff Chad Bianco and former Fox News host Steve Hilton are among those who have launched campaigns. Republicans have not won a statewide race in California since 2006.

Kounalakis previously served as the United States Ambassador to Hungary from 2010 to 2013. Before entering government, Kounalakis headed Sacramento-based real estate company AKT Development.