State Sen. Karen Tallian ended her campaign for governor Monday, leaving John Gregg the only Democrat remaining in the race.
The Portage lawmaker made the decision after Gregg was endorsed Monday by the AFL-CIO, a coalition of labor unions. The United Steelworkers union endorsed Gregg on Saturday.
Without volunteer and financial support from organized labor, Tallian had little chance of successfully competing against Gregg, she told The Times of Munster.
"I've got no choice," Tallian said. "I can't fight all of that."
Tallian's decision makes Gregg, a former Indiana House speaker, the likely 2016 Democratic nominee for governor and creates a probable rematch of the 2012 election in which Republican Gov. Mike Pence beat Gregg by 3 percentage points.
A third Democrat, Glenda Ritz ended her gubernatorial campaign Aug. 7 to run for a second term as Indiana's superintendent of public instruction.
Gregg issued a statement lauding Tallian as "a true champion for working Hoosiers" and saying he looks forward "to standing with her in the years ahead to improve our schools, rebuild our infrastructure and create an economy that works for all workers."
Tallian raised just $23,751 in campaign funds during the first half of the year, with most of it coming from her Senate campaign fund. Meanwhile, Gregg raised $1.7 million during the same six-month period, including many large donations from state and national labor groups. Pence has $4.2 million in his campaign fund.
Tallian, whose Senate term does not expire until 2018, said she isn't considering an immediate run for another state office. She said she has not discussed with Gregg the possibility of becoming his lieutenant governor running mate.
Tallian announced her campaign for governor in May 10, promising to be the progressive voice in the Democratic race.