The United States will deny Egypt over US $250 million of military and economic aid due to its failure to make progress on respecting human rights and democratic norms, reports Reuters.
US officials were particularly disappointed with a law passed by the Egyptian President Abdel Fattah al-Sis that restricted the work of Non Governmental Organisations, sources told Reuters.
Initially Egyptian officials had assured US officials that the law, which introduces jail terms of up to five years for non-compliant NGO workers would not be allowed to go through parliament.
Under US law, 15% of the $1.3 billion allocated to Egypt under the US Foreign Military Funds is required to be withheld if Egypt is not making progress on advancing human rights and democracy.
