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US to cut aid to Egypt over its refusal to accept displacement of Gazans, sources say

March 13, 2025 at 11:51 am

Palestinians flee to safety with whatever belongings they can take with them after the Israeli army’s heavy air and artillery attacks in Gaza City, Gaza on October 06, 2024 [Hamza Z. H. Qraiqea/Anadolu Agency]

The US administration has informed Egypt that it plans to reduce military aid to Cairo as a result of differences in their efforts to deal with the results of Israel’s genocidal bombing of the Gaza Strip, informed sources told Al-Araby Al-Jadeed. 

The policy change comes against the backdrop of Egypt’s disapproval of Trump’s plan to displace Palestinians from Gaza to make way for the creation of the ‘Riviera of the Middle East’, which includes building new communities for Palestinians in Egypt and Jordan.

An Egyptian diplomat in Washington told the newspaper that the exact extent of the aid cut to Egypt has not yet been determined, but it is expected to be implemented next year.

According to the report, Trump previously hinted at the possibility of halting aid to Egypt and Jordan if the two countries do not agree to his plan to move Palestinians out of Gaza and into the neighbouring countries.

Egypt has proposed a $53 billion plan to rebuild Gaza without displacing its population. The motion was adopted by the Arab League during its emergency session last week and has received Western backs from Europe.

States from around the world have slammed Trump’s Gaza plan as ethnic cleansing, which is a war crime.

The United States provides Egypt with an estimated $2.1 billion in annual aid, of which $1.3 billion is allocated for military aid, and the remainder is directed towards economic assistance, including to the Egyptian government and non-governmental organisations.

US military aid to Egypt includes the supply of weapons and military equipment, such as fighter aircraft, artillery and tanks, as well as training programmes for armed forces officers and support for military development projects.

READ: Egypt met with Hamas to prevent displacement plan, sources say