US Republican presidential hopeful and former UN ambassador Nikki Haley speaks at a campaign event at Freshfields Village shopping center in Kiawah Island, South Carolina, on February 17, 2024
US Republican presidential hopeful and former UN ambassador Nikki Haley speaks at a campaign event at Freshfields Village shopping center in Kiawah Island, South Carolina, on February 17, 2024. AFP

Americans for Prosperity Action (AFP Action), the political spending group supported by conservative billionaire Charles Koch, has announced a cessation of financial support for Nikki Haley's presidential campaign.

The decision comes in the aftermath of Haley's defeat in the South Carolina primary, signaling a potential decline in her support among key Republican donors.

"She has made it clear that she will continue to fight, and we wholeheartedly support her in this effort. But given the challenges in the primary states ahead, we don't believe any outside group can make a material difference to widen her path to victory," Emily Seidel, a senior adviser to AFP Action, wrote in an email to staff.

The move by AFP Action deals a blow to Haley's bid for the White House, as her reliance on top Republican Wall Street and corporate donors appears to be waning. Furthermore, the funding withdrawal suggests that Donald Trump's victory in the Republican nomination contest is increasingly seen as inevitable.

Despite halting funding for Haley's campaign, AFP Action has not shifted its support to the former president. Seidel stated that while the organization continues to "endorse" Haley for president, it will now "focus our resources where we can make the difference. And that's the U.S. Senate and House."

Seidel also expressed concerns about Trump's potential impact on the Republican Party, stating, "If Donald Trump is at the top of the Republican ticket, the risk of one-party rule by a Democratic Party captured by the Progressive Left is severe and would do irreparable damage to the country."

Notably, the decision adds to the challenges faced by Haley, with other donors, including billionaire Reid Hoffman, also ceasing financial support.

Meanwhile, Haley's campaign pledged to continue through Super Tuesday on March 5, despite AFP Action's funding withdrawal. Olivia Perez-Cubas, a spokesperson for Haley, expressed gratitude for AFP's past support, stating, "We thank them for their tremendous help in this race."

"Our fight continues, and with more than $1 million coming in from grassroots conservatives in just the last 24 hours, we have plenty of fuel to keep going. We have a country to save."