WASHINGTON (Reuters) – The United States has decided to deny Egypt $95.7 million in aid and to delay a further $195 million because of its failure to make progress on respecting human rights and democratic norms, two sources familiar with the matter said on Tuesday.

The decision reflects a U.S. desire to continue security cooperation as well as frustration with Cairo’s stance on civil liberties, notably a new law that regulates non-governmental organizations that is widely seen as part a growing crackdown on dissent, said the sources, who spoke on condition of anonymity.

U.S. officials were especially unhappy that Egyptian President Abdel Fattah al-Sisi in May allowed the NGO law to go into effect. Human rights groups and activists have said that it effectively bans their work and makes it harder for charities to operate.

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