President Joe Biden’s outgoing administration will move $95 million in military funding from Egypt to Lebanon, showing how cooperation with Israel outweighs human rights discourse in US aid decisions.
In a notification to Congress, the State Department outlined plans to redirect the funds, praising Lebanese armed forces for upholding the November 2024 agreement with Israel to stop border hostilities. The focus on Israeli security interests stands out in the decision-making process.
Egypt’s Actions
Near Israel’s south westerly border, Egypt has made some moves. On Monday, Israeli sources suggested that Egyptian military carried out operations in central Sinai in violation of the terms of the peace agreement.
Such actions are not without precedent. In 2012, during the presidency of Mohamed Morsi, a vocal critic of Israel, the Egyptian military reportedly carried out airstrikes in Sinai against suspected militants — the first such strikes since the 1979 peace treaty.
Legal troubles have also cast shadows on US-Egypt ties, most notably, the 2024 corruption scandal involving a Democratic Senator.
The Menendez Affair
In a landmark verdict, Senator Bob Menendez was convicted of 16 crimes, including acting as an agent for the Egyptian government and accepting bribes to expedite military aid access. The case revealed troubling details about Egypt’s influence operations, including evidence that Menendez’s wife served as a conduit to Egyptian military officials, exchanging texts with an Egyptian general and facilitating high-level meetings in Washington.
Prosecutors presented evidence that Menendez had provided Egyptian officials with sensitive information about staff working in the U.S. Embassy, based in Cairo, and had ghostwritten a letter encouraging fellow senators to release $300 million in military aid. Menendez also informed Egyptian contacts, via his wife, about his plans to approve $99 million in tank ammunition.

Since 1946, the US has provided Egypt with over $87 billion, largely to sustain peace with Israel through the 1979 peace treaty. This long-standing support now meets new tests.
Lebanon’s Emerging Status
Egypt continues its efforts to mediate negotiations between Israel and Hamas in Gaza. However, Biden’s decision to reallocate funds to Lebanon demonstrates the shifting alliances of U.S. security parnerships in the region, especially in this new regional order, after the latest war in Lebanon.
U.S. funds are intended to enhance the Lebanese military’s capabilities in border security, counter-terrorism, and skills development. Congress has 15 days to review the change.
One congressional aide framed the decision positively, telling Reuters the move puts money “in a better place”. This support suggests broad agreement on prioritising partners who work well with Israel. Lebanon’s readiness to work with Israel on border security has improved its standing as a US aid recipient.
The shift breaks from past patterns that favoured established partners like Egypt. The latest shift in U.S. aid payments creates a new precedent for future transactions: countries can gain U.S. support if regimes choose to work with Israel, whilst others face a uphill battle.