Egypt in Transition

Jeremy M. Sharp
Specialist in Middle Eastern Affairs

On February 11, 2011, President Hosni Mubarak resigned from the presidency after 29 years in power. For 18 days, a popular peaceful uprising spread across Egypt and ultimately forced Mubarak to cede power to the military. In the wake of Mubarak’s resignation, a Supreme Council of the Armed Forces (SCAF)—made up entirely of military officers who enjoyed leading positions under Mubarak—has exercised executive authority directly and via an interim cabinet led by Prime Minister Essam Sharaf. The SCAF oversaw a March 2011 referendum that approved amendments to Egypt’s constitution, issued a constitutional declaration, and has also issued new laws on the formation of political parties and the conduct of upcoming parliamentary elections. The amended constitution lays out a transition framework in which the elected People’s Assembly and Shura Council will, in conjunction with the SCAF, select members for a 100-person constituent assembly to draft a new constitution subject to a referendum in 2012 or 2013.

How Egypt transitions to a more democratic system in the months ahead will have major implications for U.S. foreign policy in the Middle East and for other countries in the region ruled by monarchs and dictators.

This report provides a brief overview of the transition underway and information on U.S. foreign aid to Egypt. U.S. policy toward Egypt has long been framed as an investment in regional stability, built primarily on long-running military cooperation and sustaining the March 1979 Egyptian-Israeli peace treaty. Successive U.S. Administrations have viewed Egypt’s government as a moderating influence in the Middle East. U.S. policy makers are now grappling with complex questions about the future of U.S.-Egypt relations, and these debates are likely to influence consideration of appropriations and authorization legislation in the 112th Congress. The United States has provided Egypt with an annual average of $2 billion in economic and military foreign assistance since 1979. For FY2012, the Obama Administration has requested $1.551 billion in total aid to Egypt.

On September 22, 2011, the Senate Committee on Appropriations marked up S. 1601, the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2012. The bill provides the full FY2012 $1.55 billion request for Egypt, but it does include some conditions. The bill authorizes FMF grants to be transferred to ESF. It also states that no funds in the bill may be provided to Egypt unless the Secretary of State certifies to the Committees on Appropriations that such government is meeting its obligations under the 1979 Egypt-Israel Peace Treaty and that that the Government of Egypt has held free and fair elections and is implementing policies to protect the rights of journalists, due process, and freedoms of expression and association. S. 1601 also authorizes bilateral debt relief for Egypt and up to $60 million in ESF for Egypt to create an Enterprise Fund to support small and medium-sized businesses (SMEs).


Date of Report: November 18, 2011
Number of Pages: 24
Order Number: RL33004
Price: $29.95

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