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US to release $1.3bn in military aid to Egypt

MarketsUS to release $1.3bn in military aid to Egypt

The US government will release the full allocation of $1.3bn in military aid to Egypt for the first time under the Biden administration, according to a State Department spokesperson. The decision comes as the US relies on Egypt to mediate ceasefire talks between Israel and Hamas during the ongoing Gaza conflict.

Out of the total aid, $320m is subject to human rights conditions. However, Secretary of State Antony Blinken informed Congress that he would waive $225m of these conditions, citing the importance of Egypt’s role in advancing US national security interests, particularly in relation to the Gaza crisis.

The spokesperson highlighted Egypt’s contributions to securing a ceasefire, facilitating the return of hostages, and delivering humanitarian assistance to Palestinians.

Senator Chris Murphy, chair of the Senate Foreign Relations Committee’s Middle East subcommittee, acknowledged that while aid had been withheld previously due to human rights concerns, the current conflict has increased Washington’s dependence on Egypt for diplomatic mediation.

Egypt also serves as a critical entry point for humanitarian aid to Gaza.

Blinken had similarly waived conditions last year but withheld some military aid due to Egypt’s lack of progress on human rights issues.

This year, however, he approved the release of $95m, citing improvements such as the release of political prisoners and reforms in pretrial detention laws.

The State Department spokesperson emphasised that Washington will continue its dialogue with Egypt to ensure further human rights advancements, which are crucial for maintaining a strong bilateral relationship.

This decision follows an earlier bilateral agreement between the US Agency for International Development (USAID) and Egypt’s Ministry of International Cooperation, which secured $130m in funding aimed at promoting economic opportunity and improving living conditions in Egypt.

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