Story highlights US is withholding some aid until Egypt's record improves

The administration felt "blindsided" by a Egyptian move on NGOs, official says

Washington (CNN) The US has decided to deny Egypt almost $100 million in aid and hold back another $195 million until it sees improvements in Cairo's track record on human rights and democracy.

The Trump administration is looking to strike a balance between acknowledging Egypt's importance as a strategic partner and frustration with passage of a new NGO law it sees as curbing democracy and freedoms.

"We have serious concerns regarding human rights and governance in Egypt," an administration official said. "At the same time, strengthened security cooperation is important to US national security."

Washington has given Cairo nearly $80 billion in military and economic assistance over the past 30 years and will continue to support Egypt in defeating extremists, fighting terrorism and bolstering its economy, the official said.

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Egypt said it "regrets the decision" in a statement released Wednesday, calling it a "misjudgment." The US is underestimating Egypt's security needs, the Foreign Ministry statement said, adding that the funding is vitally important to both countries' common interests.

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