This is a setback for the Dems, as he was their best prospect to win the Nebraska Senate seat being vacated by Chuck Hagel.
UPDATE: Commenter Sy asks:
WHO was pushing for Kerrey to run?
Among others, Democratic Senatorial Campaign Committee Chairman Chuck Schumer, who was putting on pretty much of a full-court press. Nebraska Democrats were pretty excited about the prospect, too. And while it’s true that some of Kerrey’s positions (*cough*Social Security*cough*Iraq War resolution) have given heartburn to the Democratic base, the general feeling was that the former Nebraska Governor and Senator was pretty much the only Democrat on the planet who could put that seat into play for his party. (Nebraska is one of the most conservative states in the country.) Does that mean, as commenter P_Luk argues?:
This is a “setback” to Democrats only in the sense that it means that Republicans will not have to spend nearly as much money in Nebraska, freeing those funds up for other races.
Well, yes, but that comes under the heading of silverplate linings. I don’t think raising money on his own would have been much of a problem if Kerrey had run. He was himself, after all, a former chairman of the DSCC.
UPDATE2: As P_Luk points out in comments below, I completely misunderstood his point. Duh.