Clinton waives restrictions on U.S. aid to Egypt

Secretary of State Hillary Clinton has decided to use a national security waiver to allow over $1.5 billion of U.S. aid to Egypt, bypassing Congressional restrictions even while the Egyptian government’s assault on NGOs in Cairo continues.

The State Department hadn’t planned to announce the waiver decision today. "We’re still expecting a decision this week, but she hasn’t made it yet," State Department spokeswoman Victoria Nuland said at Thursday’s press briefing. But apparently Clinton had decided, because Senate Appropriations State and Foreign Ops Subcommittee Chairman Patrick Leahy (D-VT), the author of the restrictions, got a call from the State Department today notifying him of the waiver. In a statement Thursday afternoon, he announced the waiver and criticized Clinton’s choice.

"I am disappointed by this decision.  I know Secretary Clinton wants the democratic transition in Egypt to succeed, but by waiving the conditions we send a contradictory message," Leahy said. "The Egyptian military should be defending fundamental freedoms and the rule of law, not harassing and arresting those who are working for democracy. They should end trials of civilians in military courts and fully repeal the Emergency Law, and our policy should not equivocate on these key reforms."

Leahy’s office has been urging Clinton not to use the waiver authority that Leahy himself added to the most recent appropriations bill. Now that the waiver has been exercised, Leahy is arguing that, just because the restrictions on the aid have been removed, that doesn’t mean the U.S. government necessarily has to deliver the aid — at least not all of it up front.

"Now that Secretary Clinton has decided to use the law’s waiver authority, she should use the flexibility the law provides and release no more taxpayer funds than is demonstrably necessary, withholding the rest in the Treasury pending further progress in the transition to democracy," said Leahy.

We were told by multiple Congressional sources that the State Department is considering delaying part of the $1.3 billion of military aid and most of the $250 million in economic aid, at least for a while. The Pentagon has been urging Clinton to release some of the military aid because existing contracts with U.S. defense firms were dependent on the funds, multiple Congressional aides said.

Leahy’s House counterpart, House Appropriations State and Foreign Ops Subcommittee Chairwoman Kay Granger (R-TX), also came out against Clinton’s decision to waive the restrictions today and said that she had been told it was in fact a partial waiver.

"I am disappointed by the timing of the Secretary’s decision to issue a partial waiver of restrictions on FMF funds for Egypt while the Egyptian government’s transition is ongoing," Granger said in a statement to The Cable. "The State Department needs to make the case that waiving the conditions is in the national security interest of the United States. I expect the Secretary to follow the law and consult the Appropriations Committee before any funds are transferred."

Critics of providing further military aid to the Cairo government have raised concerns over the actions of the Supreme Council of the Armed Forces (SCAF), which allegedly played a role in the December raids on several NGOs in Cairo, including three funded by the United States: the International Republican Institute, the National Democratic Institute, and Freedom House.

A number of Americans who worked for NGOs in Egypt were temporarily banned from leaving the country and charged with crimes, but they were eventually allowed to depart earlier this month. Prosecutions against both the foreign workers and the local staffs of the NGOs continue.

The non-military aid is under particular scrutiny because it would be given largely to the Egyptian Ministry of International Cooperation, which is run by Fayza Abul Naga, the official who is suspected to have played a lead role in the raids and the prosecutions.

"The decision to waive the conditions, partially or in full, on military aid sends the wrong message to the Egyptian government — that U.S. taxpayers will subsidize the Egyptian military while it continues to oversee the crackdown on civil society and to commit human rights abuses," said David Kramer, president of Freedom House. "A resumption of military aid at this point also sends the wrong message to the Egyptian people — that we care only about American NGO workers, not about the aspirations of the Egyptian people to build democracy."

Stephen McInerney, executive director of the Project on Middle East Democracy, agreed with that assessment. The announcement of the waiver, he said, was "extremely disappointing, particularly as Egyptian and American organizations working to support Egypt’s transition to democracy remain very much under threat."

The restrictions in the bill were conditioned on Clinton certifying that the Egyptian military is making progress on the transition to democracy, and that the Egyptian government is allowing freedom of expression and assembly. McInerney said the United States can still hold Egypt accountable for those promises.

"I very much hope, as Senator Leahy has expressed, that the administration will still elect to delay the disbursement of the majority of the fiscal year 2012 funds to Egypt’s military until further progress in Egypt’s transition to democratic civilian rule has been achieved," he said.

Not all senior lawmakers and officials connected with the issue are so eager to cut off U.S. funding to the Egyptian government. Senate Armed Services Committee ranking Republican John McCain (R-AZ), the chairman of IRI, has been deeply involved in the issue and traveled to Egypt in the midst of the crisis.

He told The Cable in an interview that the aid served as a valuable form of influence that the United States must use carefully.

"We’ve got to weigh all the aspects of this issue, it’s very complicated and complex. We want to be on the same page as the administration," he said. "In general, I think its two steps forward and one step back in Egypt. But there’s also the overall issue of the delicate political situation in Egypt today."

Senate Foreign Relations Middle East Subcommittee Chairman Bob Casey (D-PA) told The Cable that the issue wasn’t black and white, and that there should be a way to provide some aid while still keeping the pressure on Egypt to continue reforms.

"We’ve got to have a measure of accountability. But I think the idea of cutting off aid doesn’t make sense," Casey said. "We just have to figure out a better way to make the aid conditional based on those measures of accountability, and I think we can achieve that. I think, in this case, it’s a mistake to take an either/or approach."

UPDATE: Read Nuland’s full Friday statement on the waivers after the jump: