Voting on the Yemen measure was seen by some lawmakers as a way to censure the crown prince, who has led the campaign in Yemen.
The crown prince's appearance at G-20 comes amid an outcry over Khashoggi's killing and the summit will gauge how willing world leaders are to be associated with him following Khashoggi's murder at the Saudi Consulate in Istanbul last month.
After the report on the CIA's findings, the White House released a statement from the president that cast doubt on the crown prince's involvement, emphasized the importance of the US government's weapons deals with Saudi Arabia and the nations' shared opposition to Iran.
"Any key vote, anything that you need me for to get out of town, I ain't doing it until we hear from the CIA", Mr Graham said.
"If that doesn't constitute hostilities, I don't know what does", he said, becoming animated during his floor speech.
Newsweek and other news organizations are reporting that at least five of the Republican senators who voted against ending support for the Saudi-led war in Yemen received donations from Saudi lobbyists.More news: Vorskla vs. Arsenal - Football Match Report
More news: Paul Manafort: New accusations jeopardize plea agreement
More news: Sarri reveals inquest into Spurs defeat
The crown prince and Modi also agreed on investing in solar energy, it added. But he said the United States does not have smoking gun evidence of MBS' role in ordering Khashoggi's murder.
Earlier this month, USA officials revealed the Central Intelligence Agency believes the Crown Prince ordered Mr. Khashoggi's killing - contradicting Riyadh's claim that he was not involved in the murder.
The sanctions target Saudi Arabian nationals who are, in the opinion of the government of Canada, responsible for, or complicit in, Khashoggi's killing, Foreign Minister Chrystia Freeland said in the statement. Some senators said the White House blocked her participation.
In August, Saudi Arabia lashed out at Canada after Freeland took to Twitter to call on the regime to immediately release detained human-rights activists.
A federal court source says a prosecutor has asked a judge to determine if Saudi Arabia or Yemen are investigating the prince for possible crimes against humanity.
The resumption of funding is also in line with King Salman's intervention in the previous year insisting that the kingdom was committed to Palestinian rights, including declaring East Jerusalem as the capital of the Palestinian state.
Even though Iraq is likely to balance relations between the two Gulf rivals, it is also not going to trouble its burgeoning relationship with the kingdom by speaking out on the Khashoggi issue.