Egypt
Egypt’s annual inflation jumps to 16.5% in May
Egypt’s annual inflation rate surged to 16.5 percent in May, up from 13.5 percent in April, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS).
U.S. President Joe Biden's administration will divert $95 million in military aid allocated for Egypt to Lebanon, which faces threats from Hezbollah and other non-state actors and is enforcing a ceasefire with Israel, according to a document seen by Reuters on Monday.
U.S. President Joe Biden speaks at a reception for newly elected Democratic members of Congress, in Washington, U.S. January 5, 2025. Reuters/Nathan Howard
U.S. President Joe Biden's administration will divert $95 million in military aid allocated for Egypt to Lebanon, which faces threats from Hezbollah and other non-state actors and is enforcing a ceasefire with Israel, according to a document seen by Reuters on Monday.
The State Department notification to Congress of the planned shift calls the Lebanese armed forces "a key partner" in upholding the Nov. 27, 2024, Israel-Lebanon agreement to cease hostilities and to prevent Hezbollah from threatening Israel.
The move comes after some of Biden's fellow Democrats in Congress expressed deep concerns about Egypt's human rights record, particularly the arrests of thousands of political prisoners.
The State Department and the Egyptian embassy in Washington did not immediately respond to requests for comment.
In September, State said the Biden administration was overriding human rights conditions on military aid to Egypt, granting Cairo its full allocation of $1.3 billion, including $95 million tied specifically to Egypt's progress on the release of political prisoners.
The notification did not spell out that the $95 million was those funds specifically, but a congressional aide said he did not believe the amount was a coincidence.
Egypt has been a vital partner in Biden administration's efforts to get more aid into Gaza and has helped mediate the so far unsuccessful efforts to secure a ceasefire between Israel and Hamas.
The September decision on the money for Egypt prompted objections from within Congress, including from Democratic Senators Chris Murphy and Chris Coons, both senior members of the Foreign Relations Committee, who released a joint statement decrying the decision.
According to the State Department document, the funds would be made available to professionalize the Lebanese Armed Forces, strengthen border security, combat terrorism and address security requirements affected by the shift in power in Syria.
"The United States remains Lebanon’s security partner of choice, and U.S. support to the LAF directly helps secure Lebanon and the wider Levant region," the notification said.
Bolstering Lebanon's army could also help ensure Syria's transition is not disrupted by Iran-backed Shi'ite Islamist group Hezbollah, which previously played a major part in propping up Assad during Syria's civil war.
Under U.S. law, Congress has 15 days to object to a reallocation of military assistance, but a congressional aide familiar with the process commented on Monday that he expected lawmakers would welcome the administration's shift of the funds to Lebanon.
"This is a way to say, 'This funding that Egypt didn't really deserve and doesn't really need, let's reprogram that and put this in a better place," the aide told Reuters, requesting anonymity to speak freely.
By Patricia Zengerle
Egypt’s annual inflation rate surged to 16.5 percent in May, up from 13.5 percent in April, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS).
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