This competitive Minnesota House race is heading for a primary

One of two leading Republicans running in Minnesota's most competitive congressional district now says he'll stay in the race — regardless of whether he wins the state party's endorsement next weekend.

Why it matters: The reversal by former federal prosecutor Joe Teirab increases the likelihood that the GOP's pick to challenge DFL U.S. Rep. Angie Craig will be decided in an August primary.

• The move will prolong a potentially costly intraparty battle in a district Republicans are hoping to flip this November.

State of play: Teirab and attorney Tayler Rahm are locked in a heated race for the support of GOP delegates in the suburban Twin Cities district.

• Both had previously pledged to abide by the endorsement and drop out if they failed to secure the party's stamp of approval — as is common in Minnesota politics.

Yes, but: In an email to supporters, Teirab says concerns about Rahm's criminal defense work and dismal fundraising numbers prompted him to reverse course.

• "We can't delude ourselves into thinking this race can be won without the necessary resources, nor that money will magically appear in anyone's war chest post-endorsement," he said.

Follow the money: As Axios reported last week , Teirab ended March with more than $660,000 to spend on his bid, compared to Rahm's $59,500.

• Craig, a three-term incumbent who flipped the seat to DFL control in 2018, has $2.8 million in the bank.

The other side: Rahm, who has won every straw poll held by local GOP groups this cycle, accused Teirab of engaging in "dishonest and self-serving tactics." He dismissed his rival's claims about his own record as "baseless."

• "His decision to run a primary isn't about the issues he claims," Rahm said in a statement. "It's because he knows he will lose the endorsement."

The intrigue: While GOP Majority Whip Tom Emmer hasn't formally endorsed in the race, Teirab's campaign has hired one of Emmer's former advisers and his Minnesota-based fundraiser.

What's next: 2nd Congressional District Republicans will gather in Lakeville on Saturday to make their pick.

• The primary election will be held on Tuesday, Aug. 13.