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Americans for Prosperity Action, the political arm of Charles Koch’s conservative network, announced it will cease funding Nikki Haley’s presidential campaign following her underperformance in the South Carolina primary.

In a memo addressed to AFP Action staff, senior adviser Emily Seidel outlined the organization’s plan to redirect its efforts toward Senate and House races while holding its endorsement of Haley. The memo said, “With the South Carolina presidential primary this weekend and 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 for maximum impact towards our goals.”

Seidel praised Haley for her vision and commitment to addressing the nation’s challenges, stating, “Nikki Haley has been willing to take on that challenge and offer America a forward-looking vision and solutions to the toughest issues our country faces.” Despite this commendation, Seidel noted the limitations of outside groups in materially affecting Haley’s path to victory in the upcoming primaries.

This adjustment follows AFP Action’s initial endorsement of Haley’s bid for the presidency last November, a significant move as it was the first time the group supported a Republican candidate in a presidential primary.

In a statement, Nikki Haley’s Press Secretary, Olivia Perez-Cubas, said, “AFP is a great organization and ally in the fight for freedom and conservative government. 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.”