Palin declared a state of emergency due to the flooding situation in Eagle, Alaska.
"It's basically wiped out a town," Bill McAllister, Palin's communications director, told CNN.
McAllister confirmed Palin will stay in Alaska this weekend.
Palin was slated to be a guest of Fox News at the annual dinner.
The former Republican vice presidential candidate also pulled out of co-hosting a Friday night dinner for the Republican Governors Association with South Carolina Gov. Mark Sanford.