Had the U.S. discontinued its $3 billion in aid to Egypt, it would have to also cut off funding to Israel. However, if the U.S. decided to continue giving aid to Israel, Graham said Egypt could argue the U.S. and Israel were violating the peace treaty.
"It would have been the end of the peace treaty between Egypt and Israel," Graham said. "I can't think of anything more destabilizing to the region than that."
He also said the amendment would have eliminated aid to moderate Islamic governments like Libya and Pakistan whenever rogue terrorists groups attacked U.S. personnel in that country. Essentially, he said, that gave terrorists the ability to determine what countries in the Middle East received U.S. foreign aid.
"Al-Qaeda would have been very much for this amendment," Graham said. "Radical Islam would love nothing more than for us to withdraw from this region.
"I don't want to turn policy making powers over to terrorists," he said.
Manchin said he respects Paul as a person, but he thought it was wrong to politicize the vote on this issue, especially considering the fact that 81 senators voted against Paul's amendment.
"Foreign relations is not a Democrat or Republican issue - it's an American issue," Manchin said. "We should all look at it as what's best for our country, and not be making political hay out of it."
Graham also noted on the call that he was in North Carolina campaigning for Republican presidential nominee Mitt Romney, and seeks a GOP-majority Senate. But Graham said Paul's amendment was just the wrong approach.
Manchin staffers arranged the call.