Sylvia Luke is dropping out of the race to retain her position as Hawaiʻi’s lieutenant governor, her campaign announced on Sunday afternoon.

In a statement, she vaguely alluded to the ongoing Hawaiʻi attorney general investigation into a $35,000 payment to an “influential” state lawmaker in 2022. Luke has insisted she never accepted that amount of money but ignited a political firestorm in February when she suggested federal officials might have suspected her.

“This weekend, after a long discussion with my family and close friends, I decided not to seek re-election to a second term as Lieutenant Governor,” she said in a written statement.

“It was a difficult decision. Serving the people of Hawai‘i has been an honor, and my family has always been supportive of my passion for this work. But the last three months have been difficult, making the rigors of campaigning exceptionally burdensome for my family. While I have always been a fighter, I cannot tolerate the toll that they are paying.”

She continued: “I intend to continue doing the job I was elected to do, offering my best effort to the people of Hawai‘i every day.”

It was a stunning announcement from someone who was once considered one of the state’s most powerful politicians and was widely viewed as a potential future governor. Before becoming lieutenant governor, Luke was the House finance chair and known for demanding transparency and accountability from the state government.

“I acknowledge and respect the decision that the Lieutenant Governor has made to not seek reelection,” Gov. Josh Green said in a text Sunday. “Sylvia’s service to the State of Hawaiʻi for more than two decades leaves no doubt how much she cares about the people of Hawai‘i.”

Over the last three years, the governor added, she has made “great progress in helping our keiki get access to universal preschool, something that has helped many local families.”

Colin Moore, a local political scientist, said he sees this moment as the end of Luke’s political career.

“For someone who built their reputation as the detail-oriented master of the state budget to fall over campaign finance violations – I mean, we don’t know the extent – but at the least, sloppy accounting, it is ironic,” Moore said. “An ironic way to fall from power.”

Unreported Donations

Luke’s latest troubles began in January when Civil Beat asked Luke about $10,000 she had sought to refund to two political donors in 2022 – money which she had not reported receiving in the first place. Candidates are legally required to report all donations.

In response to Civil Beat’s inquiries, Luke acknowledged receiving $5,000 each from businessman Tobi Solidum and his stepdaughter Kristen Pae in January 2022, and updated her campaign filings to reflect that this year. She said the lack of reporting was a failure by her volunteer campaign staff.

Luke said she’d rushed to give the money back in March 2022 when her colleague, former Rep. Ty Cullen, was federally charged with taking bribes. She told Civil Beat she understood Solidum and Cullen to be friends, and she had in fact received the $10,000 while out to dinner with Cullen, Solidum and Pae. The connection made her uncomfortable, she said earlier this year.

The timing of the $10,000 donations aligns with $35,000 a person handed to an “influential” state lawmaker in January 2022, according to a Department of Justice document that was meant to be kept secret.

The $35,000 was initially part of a federal bribery investigation. Cullen recorded the $35,000 interaction for the FBI in an effort to lesson his prison time. But the feds handed off that piece of their probe to Hawaiʻi Attorney General Anne Lopez in January amid public pressure to expose the participants.

In February, Luke said she might be the lawmaker under suspicion in that case, and that if there’s a recording of the monetary handoff, she is “not sure” if her voice will be on it. At the same time, Luke denied ever accepting $35,000 and wouldn’t explain why she might be a suspect.

In Moore’s view, it was a public relations disaster.

“Most voters are just hearing there is something suspicious, something wrong,” he said.

Last month, she announced that a recently conducted audit of her campaign funds had identified more than $7,800 in additional campaign contributions during the first six months of that had not been reported.

Campaign Support Plummeted

Unions and advocacy groups had rallied behind Luke in recent weeks, but questions have been raised about her electability. Kauaʻi Mayor Derek Kawakami announced his own candidacy for the lieutenant governor role as Luke faced scrutiny.

Two recent polls, one by Kawakami’s campaign and the other by a super PAC that is opposing Luke, showed Kawakami well ahead of Luke if the election were to be held today. Kawakami has the backing of the powerful and well-funded carpenters union.

In a statement, Kawakami said he respects Luke’s decision and appreciates her nearly 30 years of public service to Hawaiʻi.

“She has dedicated so much to our state, and I am grateful for her commitment and contributions to the people of Hawaiʻi,” he said. “My decision to run was rooted in my desire to continue serving, and we will remain focused on delivering results on the issues that matter most to our communities.”

In recent weeks, Luke seemed to lose the faith of Gov. Josh Green. The governor announced he wouldn’t leave the state for work-related travel if it meant leaving the state government in Luke’s hands, and in the last week, he has expressed his desire to see the AG’s investigation wrapped up.

This is a developing story and will be updated.