Every year, as April approaches, the debate over US aid to Egypt resurfaces. American politicians regularly call for reductions, citing different reasons each time. But this year, the discussion is taking place under new circumstances: George W Bush’s administration is gone for good, and the world is grappling with a financial crisis in which the US played a leading role—and is now one of its biggest victims. Some politicians question why their country continues to provide aid to Egypt when the US economy desperately needs every dollar to recover. Others constantly doubt whether this aid offers any tangible benefit to the US. Meanwhile, proponents argue that Egypt’s role as a key regional partner has always been a winning card in maintaining American interests.
With Barack Obama now in the White House, both Americans and Egyptians are closely watching for the first signs of his administration’s new Middle East strategy. How will the US reorganise its regional approach, particularly with its most significant Arab ally? This question is even more pressing in light of recent developments, including Israel’s war on Gaza and the West—led by the US—insisting on Egypt’s role in the endless peace negotiations and reconstruction efforts in the devastated strip. Given these realities, does the US really have the nerve to slash its aid to Egypt?
Against this backdrop, David Pollock visited Cairo last week on a fact-finding mission representing the Washington Institute for Near East Policy. His trip involved meetings with business leaders, officials, and development experts, concluding with a session at the American Chamber of Commerce in Cairo. At this particular moment, Pollock’s visit holds significance, given his institute’s role in advising the US government on Middle East affairs as an independent body free from government funding.
In an exclusive interview with al-Borsa, Pollock addressed concerns over the future of US aid to Egypt, especially amid a global financial crisis that has hit the US hardest. He was unequivocal: cutting aid is highly unlikely. He cited several reasons, the first being that the aid package represents a tiny fraction of the US budget and is by no means a financial burden. Secondly, Obama and his administration recognise that the aid level is well-calibrated to serve American interests in the region. Lastly, the recent Gaza reconstruction summit in Sharm el-Sheikh, where aid to the enclave was doubled despite the US financial crisis, further proves that reductions are not on the table.
Pollock also ruled out any immediate changes to military aid agreements, particularly given the current tensions following the Gaza war. However, he noted that recent research indicates US military aid to Egypt lacks ‘conditionality’ and recommended increasing it. US economic aid to Egypt currently stands at $600 million, while military aid amounts to $1.3 billion. American investments in Egypt have reached $3 billion, and trade between the two countries accounts for 11% of Egypt’s total foreign trade.
However, Pollock suggested re-evaluating how US aid is spent in Egypt, advocating for a ‘legal restructuring’ of funding for development projects. He also highlighted a recommendation from experts at his institute for a shift towards what he called ‘visible project programmes’. He gave the example of how Egyptians clearly associate Japan with the construction of the Cairo Opera House and France with the city’s metro system. In contrast, most Egyptians are unaware of what the US has done, despite its critical role in infrastructure projects such as telecom networks, electricity grids, and sewage systems. The issue, he argued, is that these contributions remain largely unseen.
Beyond the aid debate, Pollock emphasised the importance of US-Egypt trade relations, noting that economic ties between the two countries have continued to grow—even during the strained political climate under Bush. This, he believes, demonstrates that their economic partnership has reached a level of maturity where politics is no longer a determining factor. For this reason, he insisted that the new US administration must focus on economic realities rather than political narratives. His meeting with the American Chamber of Commerce in Cairo was, in his view, a fitting conclusion to his visit.
This article is originally published by AlBorsa in Arabic and later AI-translated by South Push.