White House press secretary Stephanie Grisham said in a text message that Melania would not be having the fundraiser which was scheduled for March 18 in Beverly Hills. She said the decision was due to a “scheduling conflict.”
The shocking move comes amid recent concerns surrounding the coronavirus in the US.
Los Angeles has declared a state of emergency over the outbreak.
The event was set to be held in that state.
Several members of Congress including Texas Sen. Ted Cruz and Arizona Rep. Paul Gosar announced over the weekend that they were self-quarantining after coming into contact with a person who tested positive for the virus.
They came into contact with the infected individual at last month’s Conservative Political Action Conference in National Harbor, Maryland.
US President Donald Trump and Vice President Mike Pence also attended the event.
However, organisers said neither of the men came into contact with the person who had the virus.
The fundraiser would have been Melania’s first that she would have hosted alone.
The First Lady is also supposed to be holding an event on March 25 at the President’s Mar-a-Lago resort.
However, Twitter users were not convinced Ms Grisham’s “scheduling conflict” excuse, with many saying that the coronavirus was the real reason.
One user said: “@flotus is lying…heaven forbid she come to California…hope her husband runs scared as well.”
Another said: “’Scheduling conflict’ – RRRRRight!”
Karen said: “@FLOTUS probably isn’t going to California because like rest of us she can’t trust @POTUS to make virus test available.”
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Another replied: “Claims a scheduling conflict. Must be working on #BeBest with her husband.”
While another said: “I think we all know he has been tested…he’s a germaphobe…
“Melania cancelled fundraiser in California….Trump lies about everything.”
Another critic tweeted: “Coronivirus scared her too. Her husband says we are safe.”
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