The policy shift, part of an effort to pressure Cuba over its support for embattled Venezuelan President Nicolas Maduro, reportedly will be announced Wednesday.
Trump's veto-the second of his presidency-came almost two weeks after the House of Representatives passed the Yemen measure with an overwhelming bipartisan vote, marking the first time Congress has sent a War Powers resolution to the president's desk.
Tuesday's veto was the second of Trump's presidency.
Trump's response to this reassertion of the basic premises of the US Constitution came on Tuesday evening in the form of a veto and a claim that this congressional intervention represents "an unnecessary, risky attempt to weaken my constitutional authorities".
After the Senate adopted the resolution in mid-March, the Democratic-led House - with support from 16 Republicans - voted in support of the resolution ending US aid, sending the measure to the president's desk.
It marked the first time both chambers of Congress had supported a War Powers resolution, limiting the president's ability to send troops into action.
The president also said that the measure would harm bilateral relations and interferes with his constitutional power as commander in chief.
The U.S. provides billions of dollars of arms to the Saudi-led coalition fighting against Iran-backed rebels in Yemen.
"There are no United States military personnel in Yemen commanding, participating in, or accompanying military forces of the Saudi-led coalition against the Houthis in hostilities in or affecting Yemen", he said in his veto message.
House Speaker Nancy Pelosi issued a statement Tuesday night saying: "The conflict in Yemen is a horrific humanitarian crisis that challenges the conscience of the entire world".
Congress is not likely to have the votes to override the president's veto, which would require 2/3rds support of each of the Senate and the House of Representatives. US intelligence concluded that Saudi Crown Prince Mohammed bin Salman ordered the journalist's assassination. After all, Trump did bring some of his isolationist intuitions with him to the Oval Office.
Earlier this month, Congress passed the War Powers Resolution to stop USA involvement in the foreign conflict, with several Republicans joining Democrats in large part to send a message about the Trump administration's unwavering support for the Saudis. Bernie Sanders, who led the effort to pass the resolution in the Senate, said via Twitter he was disappointed but not surprised by the veto, adding, "The people of Yemen desperately need humanitarian help, not more bombs".
In his State of the Union address in February, Trump declared, "Great nations do not fight endless wars".
Trump argued that United States support for the bloody war between the Saudi-backed Yemeni government and Iran-aligned Huthi rebels was necessary for a variety of reasons, "first and foremost" to "protect the safety of the more than 80,000 Americans who reside in certain coalition countries".