This report provides an overview of the key issues for Congress related to Egypt and U.S. foreign aid to Egypt. The United States has provided significant military and economic assistance to Egypt since the late 1970s. Successive U.S. Administrations have routinely justified aid to Egypt as an investment in regional stability, built primarily on long-running cooperation with the Egyptian military and on sustaining the 1979 Egyptian-Israeli peace treaty.

This report analyzes this proposed change in U.S. foreign assistance to Egypt; it provides background on the history of cash flow financing (CFF) and reviews various issues for Congress.

This report provides an overview of the key issues for Congress related to Egypt and information on U.S. foreign aid to Egypt. It briefly provides a political history of modern Egypt, an overview of its political institutions, and a discussion of the prospects for democratization in Egypt, as well as addressing the following current topics: the Arab-Israeli peace process, Iraq, terrorism, democratization and reform, human rights, trade, and military cooperation.