 He was defeated by Ernest Gruening in the November 25, 1958 election, held just before Alaska became a state on January 3, 1959.In 1960, Stepovich campaigned against a ballot initiative to move the state capital from Juneau, Alaska to Anchorage, Alaska.Stepovich ran for governor of Alaska in 1962, but was defeated by incumbent William A. Egan by a narrow margin.