article has been updated to reflect new developments. It was first published on Jan. 31, 2011
How much does the U.S. spend on Egypt?
Egypt gets the most U.S. foreign aid of any country except for Israel. (This doesn’t include the money  spent on the Iraq and Afghanistan wars.) The exact amount varies from year to year and there are many different funding streams, but U.S. foreign assistance to Egypt has averaged about $2 billion a year since 1979
military funding also enables Egypt to purchase U.S.-manufactured military goods and services
Congress threatened to block the aid when Egypt began a crackdown on a number of American pro-democracy groups this winter. A senior Obama administration official said that Secretary of State Hillary Rodham Clinton had no way to certify  the bill’s conditions were being met.
But in March Clinton waived the certification requirement (yes, she can do that) and approved the aid, despite concerns remaining about Egypt’s human rights record. The reason? “A delay or cut in $1.3 billion in military aid to Egypt risked breaking existing contracts with American arms manufacturers that could have shut down production lines in the middle of President Obama’s re-election campaign,” the New York Times reported . Breaking the contracts could have left the Pentagon on the hook for $2 billion.
U.S. economic aid to Egypt has slumped from $815 million in 1998 to about $250 million in 2011
When the Obama administration announced last month  that it was sending the Egyptian government $450 million to help forestall a budget crisis, Representative Kay Granger, a Texas Republican and the chairwoman of a subcommittee that oversees foreign aid, said she would block the money because of concerns about Egypt’s direction under the Muslim Brotherhood.
via Edwebb’s Favorite Links on Egypt from Diigo http://www.propublica.org/blog/item/f.a.q.-on-u.s.-aid-to-egypt-where-does-the-money-go-who-decides-how-spent