NEW YORK – In a stunning blow to Nikki Haley’s presidential ambitions, the powerful Koch political network announced on Sunday that it is withdrawing financial support for her campaign after a disappointing third place finish in the South Carolina primary.
The decision by Americans for Prosperity (AFP), founded by conservative mega-donors Charles and David Koch, leaves Haley scrambling to replace millions of dollars in advertising and organizational backing just as the campaign enters a critical stretch.
“We don’t believe any outside group can make a material difference to widen her path to victory,” wrote AFP CEO Emily Seidel in an internal memo obtained by the press. She indicated that resources would be redirected to contests “where we can make the difference,” likely meaning key House and Senate races.
Koch Cash Dries Up After Humiliating Home State Loss
The move comes only one day after Haley limped to a third place finish in the South Carolina Republican primary, a state she represented for six years as governor. The loss in what was considered friendly territory appears to have convinced the Koch network that Haley has no viable path to the nomination.
Charles Koch in particular has been determined to prevent another Trump nomination, seeing the former president as toxic for both the country and the Republican brand. By backing Haley early, the normally libertarian Koch brothers made a rare foray into presidential politics in hopes she could consolidate the anti-Trump vote.
But with Trump now on a glide path to the nomination, the spigot has been turned off – leaving Haley without her biggest financial backer.
Can Haley’s “Movement” Survive Without Koch Fuel?
While Haley’s campaign put on a brave face, insisting “our fight continues” in a statement, the loss of Koch cash right as the campaign goes national could be a death blow.
AFP has already spent millions on Haley’s behalf, paying for TV ads and campaign infrastructure in early states. That’s money the cash-strapped campaign, which lags far behind Trump in fundraising, likely cannot replace from other sources.
Haley will attempt to rally grassroots support, citing $1 million in small dollar donations after South Carolina. But without her “sugar daddy” Koch brothers bankrolling the campaign, Haley faces a monumentally difficult path ahead.
The question now is whether the rest of the donor class follows the Koch network in abandoning Haley to consolidate behind another Trump alternative – or if her “movement” collapses without its patron’s financial oxygen.
