Egypt is the second largest recipient of foreign assistance from the U.S. after Israel and received nearly USD 79 billion in bilateral foreign aid between 1946 and 2017. Egypt receives the bulk of foreign aid funds from two primary accounts: Foreign Military Financing (FMF) and Economic Support Funds (ESF). In addition, it receives smaller, less consistent sums for International Military Education and Training (IMET), for International Narcotics Control and Law Enforcement (INCLE) and for Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR). The U.S. Agency for International Development (USAID) is the primary provider of U.S. bilateral foreign assistance, followed by the Department of Agriculture and Department of Defense. All U.S. foreign aid to Egypt is appropriated and authorized by Congress.
In August 2018, the U.S. government released USD 195 million in military aid to Egypt, which was suspended in 2017 over human rights concerns. The release was a resul/t of numerous steps Egypt took to strengthen bilateral relations and counterterrorism efforts.
The FY2019 Omnibus provides USD 1.42 billion in foreign assistance for Egypt. Of this, USD 1.3 billion was from FMF; USD 112.5 million was from ESF; USD 3 million was for NADR; USD 2.0 million for INCLE; and USD 1.8 million in IMET.
Top Recipients of U.S. Foreign Assistance (USD million)
Over the past two decades, U.S. Economic Support Fund (ESF) assistance to Egypt has been reduced by over 90%, from USD 833 million in FY 1998 to USD 75 million for FY 2019. Egypt has not received less than USD 100 million in annual U.S. economic assistance since the late 1970s: the steep decline results from previous years in which large sums of obligated money were not utilized. Meanwhile, the Trump Administration has yet to reverse or otherwise modify the Obama-era decision to eliminate a form of procurement known as cash flow financing (CFF), which allows Egypt to repay arms purchases over a longer time period.