The United States has informed Egypt of its decision to reduce military aid due to disagreements over handling the humanitarian fallout from Israel’s war on Gaza, Al-Araby Al-Jadeed reports, citing informed sources.
The move comes over Egypt’s strong opposition to US President Donald Trump’s proposal to relocate Palestinians from Gaza to neighbouring countries, including Egypt and Jordan, in a plan dubbed the “Riviera of the Middle East.” Cairo has rejected any forced displacement, instead proposing a $53 billion reconstruction plan for Gaza, which was endorsed by the Arab League and has gained support from European nations.

An Egyptian diplomat in Washington told the newspaper that while the exact size of the aid cut has not been finalised, it is expected to take effect next year.
According to the report, Trump had previously hinted that US financial assistance to both Egypt and Jordan could be withdrawn if they refused to accept displaced Gazans.
The US currently provides Egypt with approximately $2.1 billion in annual aid, including $1.3 billion in military assistance. This support covers the supply of advanced weaponry, including fighter jets, tanks, and artillery, as well as military training programmes and development projects.
Trump’s Gaza displacement plan has been widely condemned, with international critics labeling it as ethnic cleansing—a war crime under international law.