Cash flows to Porter and dries up for Kounalakis

Politico

2 days ago

BRINGING RECEIPTS — It's hardly field-clearing money. But Katie Porter outraised her opponents for California governor since launching her campaign, racking up $3 million between March and June, even as many donors stayed on the sidelines waiting to see if Kamala Harris would enter the race.
And then there's this … Porter received a $250,000 donation windfall in the 36 hours since Harris announced she wasn't running, her campaign exclusively told our Melanie Mason.
That spike, paired with fundraising figures disclosed last night before a month's-end reporting deadline, is the latest sign — after her lead in public polling — of Porter's early edge in a Harris-less 2026 field.
The former Orange County representative and law professor's contributions were inflated by a nearly $1 million transfer from other accounts. But Porter still has a list of national small-dollar donors to tap into, and most of her money came from donations of less than $5,000, averaging $33, according to her campaign.
'I'm very grateful for the outpouring of support our campaign has received,' Porter said in a statement. 'The enthusiasm we're seeing from donors at every level shows that Californians know how critical this race is—our next Governor must have the grit to stand up to Trump and determination to tackle California's biggest challenges.'
Even with the transfer from other accounts factored in, Porter bested her competition. She announced her campaign in March, giving her only part of the semiannual reporting period ending in June to raise money, but also providing her a likely surge from loyal donors who usually shower campaigns soon after they launch.
She raised more than she spent — roughly $1 million, her campaign said — an important stat that Lt. Gov. Eleni Kounalakis and the eccentric, largely self-funded entrepreneur Stephen J. Cloobeck cannot claim. That leaves her with around $2 million in the bank headed into a mad dash for donors evaluating the field.
The large crop of Democrats vying to replace Gov. Gavin Newsom didn't shatter any donation records with the former vice president's specter looming over the political class. But some came closer to Porter than others.
Xavier Becerra: Becerra, the former Health and Human Services secretary, pulled more than $1.3 million and transferred another $1.1 million from his congressional campaign committee, leaving him with around $2.1 million banked, as we previously reported. He spent $450,000.
Antonio Villaraigosa: He raised just more than $1 million and spent $470,000, leaving the former Los Angeles mayor with $3.3 million on hand. Villaraigosa is the rare Democratic candidate who could struggle without Harris in the field, though, as he loses the opportunities he took to criticize her for perceived vulnerabilities — including her public discussion of former President Joe Biden's fitness, or lack thereof. (Granted, he has blasted Becerra for the same reason, and can continue to do so.)
Toni Atkins: The former legislative leader raised just shy of $650,000 and has upward of $4.2 million on hand. Today, she's touting that cash position as well as backing from an electrical workers' union and carpenters in a memo obtained by Playbook.
Atkins 'has more available resources than most other Democrats in the field,' the memo reads. 'More importantly, 93 percent of her donors come from within California, a clear sign of the grassroots power and in-state support her campaign has generated.'
Betty Yee: The former controller had a comparatively slow start to the year and a high burn rate, raising $238,000 — less than the $255,000 she spent. She has $637,000 left in the bank.
Eleni Kounalakis: Wednesday was a great day for the lieutenant governor — when Harris decided not to run and Rep. Nancy Pelosi expressed support for Kounalakis on cable TV. The momentum didn't last.
Kounalakis reported raising barely more than $100,000 and spent nearly three times that much — $290,000 — over the same span. To make matters worse, the $9 million cash on hand that her team touted Wednesday didn't materialize. She technically has only $4.6 million on hand in her governor's race account, with an additional $4.6 million stowed away in her lieutenant governor's account that can't all be transferred due to campaign finance limits.
Stephen J. Cloobeck: The entrepreneur is a billionaire and acting like it. He churned through $1.5 million, spending $1.1 million-plus on consultants and $26,500 flying private from Los Angeles to Sacramento. That's far more than the $160,000 he raised, and he now has just $729,000 on hand.
But Cloobeck won't let his account run dry. He reported pouring another $10 million of his fortune into the race Thursday.
Tony Thurmond: Thurmond's bid to become the first state superintendent to jump straight to the governor's mansion did not inspire a ton of donations. He raised only $70,000, spent $180,000 and had $558,000 on hand at the end of June.
REPUBLICANS NECK AND NECK — Riverside County Sheriff Chad Bianco raised $1.6 million, while former Fox News host Steve Hilton raised around $900,000 less. Their similar totals, which include a $200,000 personal loan from Hilton to his campaign, make clear that the GOP hasn't coalesced around a candidate, and cash will be at a premium now that Harris isn't providing a valuable foil to Republicans.
Bianco burned $609,000 and has $1 million socked away while Hilton spent $1 million and has just under $800,000 left.
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2028 WATCH
HARRIS THE OUTSIDER — Harris profusely denied that she stayed out of the governor's race to run for another office: 'No, no, no,' she told late night's Stephen Colbert in an interview that aired Thursday evening. But her effort to put distance between herself and government institutions is hardly unique among future presidential aspirants.
The onetime California attorney general, senator and vice president said the reason she stayed out was 'more, perhaps, basic' than leaving the door open to a presidential run. She was tired from working from within a system that she for decades defended as an elected official, first when she became a local prosecutor in the Bay Area.
'Recently I made the decision that,' Harris said, 'for now, I don't want to go back in the system. I think it's broken.'
She expressed doubt that Democratic institutions have been strong enough to defend 'our most fundamental principles' during Trump's second term. Harris reiterated that her near-term plans are to travel the country on a sort of listening tour.
On Biden … 'There were some who did' tell Harris to prepare for the possibility that Biden would drop out of the running, she recalled, but she asserted it 'was Joe's decision.'
As for the cascade of Democrats urging Biden to drop out, she said, 'It's an instinct of mine to be someone who does not participate in piling on. And I was not going to pile on.'
On her news diet … Harris said she watched lots of cooking shows after her loss and turned off the news for months: 'You know, I'm just not into self mutilation.'
On Trump … The former vice president acknowledged, at Colbert's suggestion, that she predicted much of what Trump has done in his second term. 'What I did not predict was the capitulation,' she said, 'and perhaps it's naive of me, someone who has seen a lot that most people haven't seen.'
DOWN BALLOT
HAPPY FRYDAY — As we previously reported, Newsom adviser and chief service officer Josh Fryday surged since announcing his candidacy for lieutenant governor, raking in $1.6 million and spending only $165,000 of it. Treasurer Fiona Ma still has more cash on hand, $4.5 million, but Fryday topped her $933,000 raised.
Former Stockton Mayor Michael Tubbs trailed, bringing in $725,000, but his burn rate slowed. He spent only $275,000 and had $666,000 on hand. And former Sausalito Mayor Janelle Kellman, looking for traction, raised $238,000 and spent $127,000.
On The Economy
MORNING MONEY: CAPITAL RISK — POLITICO's flagship financial newsletter has a new Friday edition built for the economic era we're living in: one shaped by political volatility, disruption and a wave of policy decisions with sector-wide consequences. Each week, Morning Money: Capital Risk brings sharp reporting and analysis on how political risk is moving markets and how investors are adapting. Want to know how health care regulation, tariffs, or court rulings could ripple through the economy? Start here.
CLIMATE AND ENERGY
TAKING THE TEMPERATURE — After Harris' exit, climate advocates see a wide-open lane for a possible champion, especially as oil and gas companies step up their campaign contributions. Read last night's California Climate for more on who's taking money from whom, who isn't, and how the governor's race shakeup is playing out in one of the state's key policy arenas.
Top Talkers
TRUMP HAMMERS UCLA — 'The Trump administration has frozen hundreds of science, medical and other federal grants to UCLA worth nearly $200 million, citing the university's alleged 'discrimination' in admissions and failure to 'promote a research environment free of antisemitism,'' the Los Angeles Times writes. 'The cancellation of grants is the first large-scale targeted funding claw-back against UCLA under the Trump administration.'
MONEY TROUBLES — ICE raids and deportations could cost California up to $275 billion in lost wages and other funds, a study from the Bay Area Council Economic Institute finds. USA Today reports that the institute's research director and author of the study said that the amount 'took us by surprise' and that 'we anticipated it would be big, but we didn't realize how expansive and significant a role undocumented workers play in sustaining California's economy.'
CAREER MOVES — ICE says that it has made more than 1,000 tentative job offers as the Trump administration ramps up hiring, The Associated Press reports. Spokesperson Tricia McLaughlin said that offers were made July 4 and that 'many of these offers were to ICE officers who retired under President Biden.'
AROUND THE STATE
— Former Stanford and Sacramento State football coach Troy Taylor is suing ESPN over defamation claims. (The Sacramento Bee)
— San Jose and San Francisco are among the top 10 metros in the U.S. for adults over 25 years old with a bachelor's degree, while four other metros in the state are among the five least college-educated nationwide, data shows. (San Francisco Chronicle)
— The San Diego County district attorney has launched an inquiry after the county canceled a multimillion-dollar contract to distribute a nasal spray that can reverse opioid overdoses. (The San Diego Union-Tribune)
Compiled by Juliann Ventura
PLAYBOOKERS
PEOPLE MOVES — Ryan Ewart has joined Southwest Strategies Group as a senior account executive. He was previously director of outreach for Assemblymember Laurie Davies.
BIRTHDAYS — former state Senate President Pro Tem Toni Atkins (favorite treat: egg custard pie) … Playbook alumna Lara Korte (favorite cocktail: martini) … Newsom spokesperson Brandon Richards … Adam Ashton at CalMatters
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