The billionaire Koch brothers' libertarian right organisation will no longer contribute to Nikki Haley's presidential campaign.
Another blow to Ms Haley's candidature for the Republican nomination is the decision made by Americans for Prosperity Action (AFP) to end the campaign.
On Saturday, former President Donald Trump defeated her in her home state of South Carolina, marking his fourth consecutive victory in the primary.
She has, nevertheless, resolved to persevere.
The president and CEO of AFP stated in an email to staff on Sunday that their support would be concentrated on important Senate and House races in November's election, rather than on Ms Haley.
"She has made it clear that she will continue to fight, and we wholeheartedly support her in this effort," said Emily Seidel.
"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 campaign of Ms. Haley maintains that it can still count on sufficient incoming funding to operate.
Haley's spokeswoman Olivia Perez Cubas thanked AFP for their assistance and announced that $1 million had been raised since her loss in South Carolina. "We have enough fuel to continue. We need to save our nation."
In November, when Ms. Haley was attempting to define herself as the obvious opponent of Mr. Trump, AFP had declared their endorsement and financial assistance.
Since then, she has shown herself to be the most resilient of Mr. Trump's rivals in the Republican primary, but it is still unclear how she will be able to win at this point.
The likelihood that the nation will witness a rematch between Republican President Joe Biden and Republican Front-runner Donald Trump in November is growing.
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