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The endorsement comes after Sanders and Obama did the same.
The Massachusetts senator finished third place in her own state's primary contest.
The billionaire ex-mayor spent over US$400 million on his campaign.
Mike Bloomberg and Elizabeth Warren have failed to breakthrough.
The socialist senator is in a strong spot after winning New Hampshire.
The Iowa Democratic Party pointed to "inconsistencies" in the results.
In an email, Harris said her campaign doesn't have the financial resources to continue.