A political action committee (PAC) backed by billionaire Charles Koch has suspended its funding of Republican presidential candidate Nikki Haley after her loss in the South Carolina Republican primary.
The super-PAC Americans for Prosperity Action (AFPA) disclosed that it had paused funding Haley on Feb. 25, a day after she lost to former President Donald Trump in her home state. The loss was a setback to Haley, who served as the Palmetto State's governor and the U.S. ambassador to the United Nations under her now-rival for the GOP presidential nomination.
The AFPA said while it still endorses Haley's presidential run, this support will only come in the form of words instead of cash.
"Given the challenges in the primary states ahead, we don't believe any outside group can make a material difference to widen [Haley's] path to victory," wrote AFPA CEO Emily Seidel in an email to staff. "So while we will continue to endorse her, we will focus on resources where we can make the difference."
Seidel added that the super-PAC will instead channel its resources to finance GOP campaigns at the congressional level. As of writing, AFPA has endorsed five candidates running for the U.S. Senate and 19 candidates running for the U.S. House of Representatives. "With the … Senate engagement really heating up, it's time to take stock of where we are and – as we always do – make sure we're optimizing our resources," Seidel wrote.
Haley's campaign thanked AFPA for its support in a Feb. 25 statement. "[AFPA] is a great organization and ally in the fight for freedom and conservative government. We thank them for their tremendous help in this race," it stated.
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LinkedIn founder Reid Hoffman also pauses funding for Haley
According to CNBC, AFPA suspending funding is "the next nail in the coffin" for Haley – "who has taken a series of hits since the start of the election year." Aside from the Koch-backed super-PAC, billionaire Reid Hoffman has also stopped funding Haley's presidential bid. Hoffman is the founder of the corporate social media platform LinkedIn, which Microsoft purchased in December 2016.
A separate report by CNBC stated that Hoffman closed his wallet to Haley's campaign after her loss to Trump at the New Hampshire primary in late January. This development was confirmed by a source close to the billionaire, who spoke on condition of anonymity.
A GOP fundraiser said three clients who each helped the former South Carolina governor raise $100,000 for her campaign are now opting out of further financial efforts for her. Meanwhile, other fundraisers have remarked that while they plan to speak out publicly in support of Haley, they aren't convinced that they will be able to raise much money for her campaign – given her losses in the Iowa, New Hampshire and South Carolina primaries.
Hoffman, who has mainly funded Democratic causes, gave $250,000 to a pro-Haley super-PAC last year per the New York Times. He remarked in December that while he supports incumbent President Joe Biden, he believed that Haley had the best chance at beating Trump in the GOP primary contest. (Related: LinkedIn co-founder and major Dem donor has visited Epstein island, recently donated $250,000 to Nikki Haley super PAC.)
"If America is to avoid another Trump presidency, it will be because Trump loses an election," Hoffman wrote. "If he is to lose, it will either be to Haley in the primary or Biden in the general."
Despite the funding setbacks from AFPA and Hoffman, Haley has pledged to stay in the race through Super Tuesday on March 5. The date coincides with many states holding their primaries. Her campaign said AFPA's suspension of funding "has not changed that calculus," and that it still has the resources to stay afloat.
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