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Summary

This report provides an overview of U.S.-Egyptian diplomatic relations, Egyptian politics, and U.S. foreign aid to Egypt. It also includes a political history of modern Egypt. U.S. policy toward Egypt is aimed at maintaining regional stability, improving bilateral relations, continuing military cooperation, and sustaining the March 1979 Egyptian-Israeli peace treaty. Successive Administrations have long viewed Egypt as a moderating influence in the Middle East. At the same time, in recent years, there have been increasing U.S. calls for Egypt to democratize. Congressional views of U.S.-Egyptian relations vary. Many lawmakers view Egypt as a stabilizing force in the region, but some Members would like the United States to pressure Egypt to implement political reforms, improve human rights, and take a more active role in reducing Arab-Israeli tensions. The United States has provided Egypt with an annual average of over $2 billion in economic and military foreign assistance since 1979. P.L. 111-8, the FY2009 Omnibus Appropriations Act, provides $200 million in Economic Support Fund (ESF) assistance and $1.3 billion in Foreign Military Financing (FMF) assistance to Egypt. For the first time, Congress stipulated that FMF grants to Egypt may be used for "border security programs and activities in the Sinai," a reference to anti-smuggling initiatives on the Egypt-Gaza border. The ESF grants to Egypt were less than half of the FY2008 level with $20 million earmarked for democracy programs and $35 million for education programs, including scholarships for Egyptian students with high financial need. Egypt received an additional $50 million in ESF assistance from P.L. 111-32, the FY2009 Supplemental Appropriations Act. S. 1434, the Senate version of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2010 (which awaits floor action), includes a provision that would fund a U.S.-Egypt endowment.

Related Legislation:
• S.1434

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