Americans for Prosperity Action, a libertarian conservative political policy network founded by the billionaire Koch brothers, announced on Sunday that it will no longer spend on Nikki Haley's presidential campaign. 

The cut comes after Haley lost the Republican primary in her home state of South Carolina on Saturday to former President Donald Trump by 20 points. 

"Nikki Haley has shown us again and again that we made the right decision in supporting her candidacy and she continues to have our strong endorsement," AFP CEO Emily Seidel wrote in an email to staff, first reported by Politico.

"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."

The organization's decision to stop financial support represents yet another setback to Haley as her path forward further narrows, but Haley's campaign insisted it continues to have strong fundraising efforts. 

"AFP is a great organization and ally in the fight for freedom and conservative government," said Olivia Perez Cubas, a spokesperson for Haley. "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."

According to the Haley campaign, in the 24 hours following South Carolina's results, the more than $1 million raised came from online dollar donations. Haley is also set to fundraise vigorously over the next 10 days as she criss-crosses the country for a campaign swing. 

AFP had initially announced their endorsement and financial support in November, providing an influx of resources and support for Haley, who was looking to establish herself as the clear challenger to Trump. 

The largest grass root operation in the country, AFP had then said it would include a multimillion-dollar ad campaign to launch in early and Super Tuesday states as well as on-the-ground volunteers to boost Haley's chances.

Seidel on Sunday told staff that AFP will instead focus its resources on House and Senate races, "where we can make the difference."

"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," Seidel added.

In:
• Charles Koch
• South Carolina Primary
• Donald Trump
• Nikki Haley

Nidia Cavazos

Nidia Cavazos is a 2024 campaign reporter for CBS News.

Instagram