Egypt: Background and U.S. Relations

Jeremy M. Sharp
Specialist in Middle Eastern Affairs

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 $2 billion in economic and military foreign assistance since 1979. In FY2010, the United States is providing Egypt with $1.552 billion in total assistance. Congress appropriated FY2010 aid to Egypt in two separate bills; P.L. 111-117, the Consolidated Appropriations Act, 2010, included $1.292 billion in economic and military assistance, and P.L. 111-32, the Supplemental Appropriations Act, FY2009, contained $260 million in FY2010 military assistance. 

After several failed attempts to form a new Egypt aid mechanism, Congress passed into law a new provision in P.L. 111-117 (section 7042) that called for the possible establishment of an endowment to "further the shared interests" of the United States and Egypt. Congress specified that up to $50 million in economic aid may be set aside for an endowment, though lawmakers noted the process is in its early stages. Appropriators stated that "the conferees recognize that discussions and negotiations on such an endowment will take time, and direct the Secretary of State to consult with the Committees on these efforts. Consultation should include explanation of the specific definition of shared interests, and how such interests would be furthered through an endowment. The conferees note that such funds are subject to the regular notification procedures of the Committees on Appropriations." 

For FY2011, the Obama Administration is seeking $1.552 billion in total assistance, the exact same amount as the previous fiscal year. The Administration's request includes $1.3 billion in military assistance and $250 million in economic aid.


Date of Report: March 25, 2010
Number of Pages: 38
Order Number: RL33003
Price: $7.95

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