Former Oakland Mayor Libby Schaaf will run for California treasurer

Former Oakland Mayor Libby Schaaf said she plans to run for state treasurer in 2026, vowing to simplify how California uses public funds to combat homelessness and build affordable housing.

Treasurer Fiona Ma, a Democrat who’s been in office since 2019, is running for lieutenant governor in 2026, creating an open race for a seat that Democrats have held for 25 years.

Schaaf, a Democrat, is the first candidate to jump into the race. She said she would harness the office’s public-financing powers to create sorely needed affordable housing, expand access to college for low-income families and support climate-friendly infrastructure.

“As a mayor, I believe that I can connect the impact of this work to the average Californian and the pain they’re feeling,” Schaaf told POLITICO in an exclusive interview.

Other possible candidates have opened fundraising committees — including former Assembly Speaker Anthony Rendon and Assemblymember Phil Ting — and said they are weighing their options. Rendon has $500,000 parked in his committee while Ting has nearly $3.3 million.

California’s treasurer is effectively the state’s banker and oversees its investment portfolio of more than $124 billion, serves on the boards of its pension funds and operates tax-credit programs for building affordable housing. Ambitious Democrats like Phil Angelides and John Chiang have tried to use the role as a launching pad for higher office.

Schaaf wants to streamline the state’s maze of programs to apply for housing funds, arguing it’s “wasteful” to have multiple agencies doling out funding. She said she would also use the treasurer’s pulpit to expand the state’s use of bond funds and federal tax credits to build housing.

“We can do better,” Schaaf said. “There is an opportunity for more efficiency.”

An Oakland native, Schaaf served as mayor from 2015 until early last year when she was termed out of office. She previously served on the City Council, representing the Oakland Hills, and was a top aide to former Gov. Jerry Brown, during his time as mayor, and former City Council President Ignacio De La Fuente.

Schaaf led Oakland during a tumultuous period, particularly as homelessness, gun violence and property crime rates soared after the pandemic. San Jose Mercury News columnist Daniel Borenstein once called Schaaf’s tenure a “devastating political fall from grace” because her unpopularity allowed progressives to dominate every facet of city politics.

But she will point to successes like launching a college savings program and universal preschool, creating a guaranteed income program for low-income residents and rental assistance to people facing homelessness.

Oakland has grappled with severe budget shortfalls in recent years. Schaaf, however, has touted her work to improve the city’s credit rating and create its first reserve fund.

After leaving office, she spent nearly a year working as interim executive director for Emerge California, a group that trains Democratic women to run for public office. She also worked as a senior adviser at Emerge.

Schaaf’s initial endorsers include former Sen. Barbara Boxer, Sacramento Mayor Darrell Steinberg, state Sen. Scott Wiener and Berkeley Mayor Jesse Arreguin.

CORRECTION: This story has been updated to reflect that Libby Schaaf no longer works as a senior adviser at Emerge California.