Erin Stewart, viewed by many Republicans in Connecticut as the favorite to lead their ticket in the election this November, ended her bid for governor on Thursday as her campaign was engulfed by accusations of fraudulent spending when she was mayor of New Britain, Conn.
Ms. Stewart, 39, immediately endorsed her chief rival, Ryan Fazio, a state senator from Greenwich, sending shock waves through the state party two days before it was scheduled to nominate a would-be challenger to Gov. Ned Lamont, a Democrat who is seeking a third term.
A Republican has not won a statewide election in Connecticut in 20 years.
Ms. Stewart withdrew from the race a little more than an hour after the city of New Britain, which is about 10 miles southwest of Hartford, released the results of an investigation into Ms. Stewart’s use of a city credit card while she was mayor, from 2013 to 2025.
A law firm hired by the city found that Ms. Stewart had racked up $123,018 in expenses from June 2016 to November 2025 that had no supporting documentation to justify them.
The items included clothing, gifts for her husband, diapers, groceries and a membership in a members-only social club in Hartford. The goods were delivered to her home, ordered from Amazon, Instacart, Costco and other retailers, according to investigators, who combed through Ms. Stewart’s social media photos for images of items that she had purchased.
“The findings of this investigation point not to isolated lapses in judgment, but to a pattern of behavior that violated public trust and the standards expected of an elected official entrusted with taxpayer funds for nearly a decade,” said the report, prepared by the Crumbie Law Group in Hartford.
Bobby Sanchez, a Democrat who is New Britain’s current mayor, said in a statement on Thursday that the city was referring the results of the investigation to the offices of the chief state’s attorney and the U.S. attorney for the District of Connecticut.
“The findings outlined in this investigation are outrageous,” Mr. Sanchez said.
The Connecticut State Police confirmed on Thursday that they had opened an investigation into the matter after the state’s Division of Criminal Justice received a complaint.
In a statement posted on social media on Thursday, Ms. Stewart, whose father, Timothy Stewart, was New Britain’s mayor from 2003 to 2011, said she was stepping back from public life.
“I take the allegations that have been made against me very seriously,” she said. “I will take accountability for any mistakes, and I intend to make full and complete restitution to the City of New Britain — my home — for anything that I owe.”
Ms. Stewart’s campaign began to unravel earlier in the week after The Hartford Courant reported on her expenditures, which she initially suggested were legitimate and were being investigated for political reasons.
The last time a Republican won a statewide election in Connecticut was in 2006, when M. Jodi Rell secured a full term as governor. In 2004, Mrs. Rell was elevated from lieutenant governor after the resignation of John G. Rowland, a Republican who was facing a corruption scandal.
Ben Proto, chairman of the Connecticut Republicans, said in a statement on Thursday that he supported Ms. Stewart’s decision to leave the race.
“This was undoubtedly a difficult decision, but one made after thoughtful and candid discussions about what is best for her family, her children and our party moving forward,” he said.
In 2013, when she was 26, Ms. Stewart became one of the youngest women in Connecticut history to win a mayor’s seat, claiming an office previously held by her father in New Britain, which is known as the “Hardware City” and was the longtime home of Stanley Black & Decker.
Her electoral success over six terms, her profile as a millennial and her social media presence made her a player in Republican politics in reliably blue Connecticut, appearing to give her the inside track for the party’s endorsement at its convention this weekend at Mohegan Sun.
In addition to Mr. Fazio, 36, the Republican field for governor includes Betsy McCaughey, 77, a former lieutenant governor of New York and Newsmax host.
In Connecticut, Republicans and Democrats will both hold their primaries in August.
Mr. Lamont, 72, is facing a challenge from Josh Elliott, a Democratic state representative from Hamden.
The nonpartisan Cook Political Report classifies the Connecticut governor’s race as a “solid Democratic” seat.
Neil Vigdor covers breaking news for The Times, with a focus on politics.
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