This report summarizes the focus of U.S.-Egyptian relations in terms of security policy and maintaining the 1979 Egyptian-Israeli peace-treaty. Moreover, the report suggests the importance of sustaining the relationship to protect U.S. interests, but also the cost of the relationship that is displayed in the $2 billion in economic and military assistance the U.S. provides Egypt with annually.

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.