Americans For Prosperity Action, an advocacy organization backed by billionaire Charles Koch and his network of wealthy conservatives supporting Nikki Haley in the Republican presidential primary, will no longer spend money on behalf of her campaign.

Following Haley’s loss in early state primaries, including her home state of South Carolina, on Saturday night, AFP decided to refocus its mission on the U.S. Senate and House elections, according to an internal email sent by the CEO of Americans For Prosperity. Emily Seidel and reviewed by ABC News.

Seidel wrote that the AFP remains confident in its support and continues to support Haley, but recognizes the challenges ahead of the upcoming primary states.

PHOTO: Republican presidential candidate Nikki Haley hosts a watch party during the South Carolina Republican presidential primary in Charleston.

Republican presidential candidate and former US ambassador to the United Nations Nikki Haley speaks at her watch party during the South Carolina Republican presidential primary election in Charleston, South Carolina, USA, on February 24 2024. REUTERS/Evelyn Hockstein

Evelyn Hockstein/Reuters

“She has made it clear that she will continue to fight and we support her unconditionally in this effort,” Seidel wrote. “But given the challenges in the primary states ahead of us, we don’t believe any outside group can make a material difference in broadening their path to victory.”

Reacting to the news, Haley’s campaign thanked the group for being an “ally in the fight for freedom and conservative government.”

“We thank you for your tremendous help in this race,” the statement from Haley’s campaign continued. “Our fight continues, and with over a million dollars coming from grassroots conservatives in the last 24 hours alone, we have plenty of fuel to keep going. We have a country to save.”

The AFP had a robust infrastructure to combat Haley’s rival, former President Donald Trump, which focused primarily on door-knocking and digital advertising.

Seidel characterized its grassroots operations as a “force to be reckoned with” and commended staff for engaging with more than 3 million voters.

The Koch-backed group stayed out of the 2016 and 2020 presidential cycles but used significant resources to try to boost Haley’s campaign. It’s unclear how much money was spent in the past four months since its endorsement, but the group had cash on hand. He reported raising more than $70 million in his last public appearance in June, with $25 million coming from Koch himself and another $25 million from one of his nonprofit groups.

PHOTO: Republican presidential candidate Nikki Haley hosts a watch party during the South Carolina Republican presidential primary in Charleston.

Republican presidential candidate and former United States Ambassador to the United Nations Nikki Haley speaks on stage at her watch party during the South Carolina Republican presidential primary election in Charleston, South Carolina, USA, on February 24, 2024. REUTERS/Brian Snyder

Brian Snyder/Reuters

As the group focuses its efforts on down-elections, Seidel suggested the “biggest and most difficult challenge” will be convincing independent voters who refuse to vote for Trump to support his Republican candidates.

Politico was the first to report the news that the AFP suspended funding for Haley.

By Sam