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World News
20 March 2025

U.S. Plans Major Cuts To Aid For Egypt Amid Gaza Crisis

As tensions rise, Egypt faces reduced military assistance while humanitarian challenges mount in the region.

In a major shift in U.S. foreign policy regarding Egypt, the Biden administration is reportedly planning to cut significant military aid to the country, responding to Egypt's refusal to accept refugees from Gaza amid the ongoing crisis. According to Al-Araby Al-Jadeed, sources within the U.S. government have indicated that this reduction in aid stems from disagreements between Washington and Cairo over how to manage the humanitarian fallout from the recent Israeli offensive in Gaza.

The Biden administration's decision comes at a time of heightened tension in the region, with many questioning Egypt's role as a potentially willing host for displaced Palestinians. The adjustment in U.S. aid is said to be part of a broader strategy addressing the humanitarian crisis resulting from the conflict. Egyptian officials have quietly acknowledged these conversations but have detailed little about the exact terms of the anticipated aid cuts.

Historically, Egypt has been a recipient of substantial U.S. financial support, amounting to around $2.1 billion annually, with about $1.3 billion of that directed towards military assistance. This funding has been crucial for Egypt's military capabilities, supporting arms deals and military training programs. However, the upcoming cuts could pose significant challenges to Egypt, particularly as it grapples with domestic economic struggles and regional pressures.

Among the significant factors contributing to the U.S. shift is President Biden's criticism of former President Trump's approach to the refugee crisis, which sought to relocate Palestinian refugees to Egypt or Jordan—an initiative that was met with unprecedented scrutiny. On the ground, this proposed plan has faced backlash from Egyptian citizens and officials, particularly as many question the feasibility and implications of such resettlement.

In recent discussions within the Arab League, Egypt put forth a $53 billion plan aimed at rebuilding Gaza without necessitating the removal of its inhabitants. This proposal garnered some support from Western nations, but U.S. approval remains in limbo as the Biden administration seeks to reevaluate its commitments to Egypt.

As the specter of humanitarian collapse looms, the Egyptian government is pressed to adapt to a rapidly changing political landscape. This includes holding discussions regarding the handling of Palestinian refugees in light of the ongoing Israeli attacks. Many Egyptian officials have urged the Biden administration to reconsider its position and provide support to Egypt while putting pressure on Israel to alleviate the situation in Gaza.

The backdrop of this narrative is set against ongoing conflict in Myanmar, where refugees in camps recently received aid from the World Food Programme (WFP), marking the last allocations of support for a population that has been besieged for over four years due to civil war. On March 19, 2025, reports indicated that many families were facing a dire shortage of resources as U.S. financial contributions to international aid agencies have dwindled under the previous administration and continued to decline under Biden.

Displaced individuals, such as leaving their homes due to ongoing violence, have voiced their concerns about the consequences of lost aid. One refugee, identified only as Bya Mee, expressed her plight, explaining that the $50 monthly assistance she received was barely enough for her family of five, urging for increased donor support: “I pray for donors to bless us and help us again. Please help us, have mercy on us.”

This evolving situation demonstrates the complexity of international aid distribution, particularly in areas ravaged by conflict. Michael Dunford, WFP head in Myanmar, reported that aid capabilities are severely limited, providing only support to approximately 35,000 individuals in April, a mere fraction of the required 15 million who struggle to meet their daily food needs.

Prominent human rights observers like Tom Andrews have underscored that the sudden withdrawal of U.S. support is having catastrophic effects on the people of Myanmar, stating, “The halt of support will kill them.” The sentiments echoed by Andrews and others resonate through camps where families depend minimally on global assistance to survive.

As the U.S. readies to adjust its foreign aid strategies, both Egypt and Myanmar illustrate the urgent need for effective humanitarian intervention. Complex local tensions and international obligations create an environment ripe for dire humanitarian consequences if immediate action is not pursued.

The dynamics not only highlight the delicate balance of international diplomacy but also pose questions about the efficacy and morality of aid allocation in times of need. As the international community watches these developments closely, the restructuring of U.S. foreign aid and its implications reverberate across borders and influence humanitarian outcomes.