Yee, a Democrat, had been one of several candidates seeking to replace termed-out Gov. Gavin Newsom in what has become a crowded and unpredictable contest. Despite the size of the field, no candidate has clearly emerged as a dominant front-runner.

Speaking during a virtual press conference, Yee said her campaign faced a tough reality as fundraising lagged and polling numbers remained low.

“The idea that voters are prioritizing experience and competence just hasn’t really played out,” she said. “That’s what I built my campaign on, but without the resources to stay competitive, it’s hard to see a path forward.”

Yee, who served two terms as state controller, said she plans to take some time before deciding whether to endorse another candidate.

Her departure comes shortly after another major shake-up in the race. Former Rep. Eric Swalwell, once considered a leading Democratic contender, exited the contest earlier this month following allegations of sexual misconduct. Swalwell, who has denied wrongdoing, is also facing multiple investigations and resigned from Congress soon after the accusations surfaced.

Throughout her campaign, Yee leaned into her reputation as a steady, no-nonsense public servant — even embracing the nickname “Boring Betty.” In a recent post on X, she framed that approach as a strength, writing that California needs “calm, cool, collected change” rather than political drama.

Still, her campaign struggled to keep pace financially in a state known for its costly media markets. Campaign filings show Yee raised just under $583,000 in 2025, far behind some of her rivals.

Although she has won statewide office multiple times — including seats on the Board of Equalization and as controller — Yee never gained broad name recognition among voters. She consistently polled in the single digits.

Even with her withdrawal, Yee’s name will remain on the June primary ballot. Earlier this year, she declined calls from state Democratic Party leaders to reconsider her candidacy amid concerns that a divided Democratic field could open the door for two Republicans to advance under California’s top-two primary system.

Under that system, the two candidates with the most votes in the June 2 primary move on to the general election, regardless of party. While Democrats dominate statewide voter registration, a fractured vote could, in theory, shift the outcome.

Yee dismissed that possibility as unlikely.

“Could it happen? Maybe. But realistically, this is California,” she said, adding that she believes the top-two system should ultimately be eliminated.

Despite her campaign’s challenges, Yee maintained strong support among party activists and previously served as vice chair of the state Democratic Party. At the party’s February convention, she placed second in delegate support with 17%, though no candidate secured the endorsement.

Voting in the gubernatorial primary is set for June 2, with mail-in ballots expected to begin going out in the coming weeks.

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At the party’s annual convention, several prominent Democrats competing to succeed Gov. Gavin Newsom offered sharply contrasting visions for tackling California’s mounting affordability crisis, rising housing costs, and public frustration over homelessness and public safety.

While opposition to the Trump administration drew loud applause throughout the gathering, the governor’s race revealed ideological and generational divides within the party.

Rep. Eric Swalwell emerged from the convention with the strongest showing in the party’s endorsement vote, securing the largest share of delegate support. However, no candidate reached the 60% threshold required to earn the official endorsement — a sign of how unsettled the race remains ahead of the June primary.

Swalwell framed the next governor’s role as both a defender against federal overreach and an advocate for lowering everyday costs.

“The next governor must protect Californians while also addressing affordability — from housing to healthcare to utilities,” he told delegates.

Former Rep. Katie Porter leaned into progressive economic proposals, calling for expanded childcare access, tuition-free public college and broader healthcare reforms. Businessman Tom Steyer also positioned himself on the left, supporting new taxes on the ultra-wealthy while casting himself as willing to challenge corporate influence in politics.

Meanwhile, San Jose Mayor Matt Mahan struck a more centrist tone, urging Democrats to refocus on results-driven governance. He argued that despite record spending, many Californians feel their cost of living has worsened.

“We must deliver measurable improvements in housing, education and public safety,” Mahan said. “If we don’t show tangible results, voters will lose confidence.”

Mahan has quickly raised millions in campaign funds, including significant backing from technology-sector donors, signaling that moderate and business-aligned Democrats remain influential players in the race.

Other candidates, including former State Controller Betty Yee and former U.S. Health Secretary Xavier Becerra, received smaller shares of delegate support. The wide distribution of votes highlighted the absence of a clear front-runner.

Beyond campaign speeches, many delegates voiced concern about California’s economic strain. The state’s median home price now far exceeds the national average, and utility and insurance costs continue to climb. Several attendees emphasized that while confronting federal policies remains important, voters are primarily focused on affordability.

“I want someone who can stand up to Washington and also stand up for working families here at home,” said one delegate attending the convention.

Labor leaders echoed similar concerns, urging candidates to prioritize wage growth and worker protections. Some argued that Democratic leadership must more directly address income inequality and the rising cost of care for families.

Despite internal differences, party leaders expressed optimism about broader electoral prospects, particularly efforts to regain congressional seats in upcoming federal elections.

Still, the convention made clear that while Democrats share a common opponent nationally, they remain divided over strategy, policy priorities and the path forward for the nation’s most populous state.

With months remaining before the primary, the contest for governor remains fluid — shaped as much by debates over California’s future as by national politics.

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