🇺🇸🇪🇬🇯🇴 Trump Threatens to Cut U.S. Aid to Egypt and Jordan Over Gaza Refugee Issue
Source: USAID, White House, State Department
U.S. President Donald Trump has warned that he may cut billions of dollars in annual aid to Egypt and Jordan if the two countries refuse to accept Palestinian refugees from Gaza.
“The United States pays billions every year to Jordan and Egypt, and I believe I can convince them to take in Palestinians. If they refuse, I will stop the aid,” Trump stated.
How Much Aid Is at Stake?
According to USAID, U.S. foreign assistance to Egypt and Jordan amounted to $3.2 billion in 2023:
• Jordan: $1.72 billion
• Egypt: $1.45 billion
U.S. Aid to Egypt
Egypt has been receiving U.S. aid since World War II, initially as economic assistance. However, after signing the Camp David Accords in 1978, Cairo began receiving significant military aid as well.
• Since then, Egypt has received $2.1 billion annually, including:
• $1.3 billion in military aid
• $815 million in economic aid
• Egypt provides the U.S. military with strategic access to the Suez Canal in return.
The aid does not go directly to the Egyptian government; instead, it is deposited in a Federal Reserve Bank of New York account and transferred to a trust fund that pays U.S. arms manufacturers.
Since 1946, Egypt has received over $85 billion in bilateral U.S. assistance. Recently, the State Department approved a $5 billion arms deal for Cairo, including advanced missiles and defense equipment.
U.S. Aid to Jordan
Jordan first received U.S. military and economic aid in 1951. In 2022, the U.S. signed a seven-year memorandum of understanding to provide Amman with $1.45 billion annually from 2023 to 2029, totaling $10.15 billion—but this was frozen after Trump’s order to review all aid programs.
Total U.S. aid to Jordan since its inception amounts to around $30 billion, helping finance:
• Budget support
• Education, healthcare, and infrastructure projects
• Defense cooperation
Jordan depends on the U.S. for 85% of its total international aid, making the potential cut highly significant.
Implications
Trump’s warning marks a significant shift in U.S. foreign policy toward its key Middle Eastern allies, tying aid to their cooperation on the Palestinian refugee issue. The decision could impact regional stability, U.S. arms sales, and diplomatic relations.
