The U.S has announced it will deduct $290 worth of aid payments from Egypt, withholding them until progress in seen in Egypt.
Following the decision, Egypt called off a scheduled meeting between its foreign minister and top U.S. presidential adviser Jared Kushner, Reuters reported.
According to a State Department official, the failure of Egypt to respect human rights and democratic norms will see the U.S. deduct $95.7 million in aid support, in addition to a $195 million further on.
However, the $195 million can be accessed anytime by Egypt, once the U.S see real progress, the official added.
The decision came after a new law regulating non-governmental organisations (NGOs).
Abdel Fattah el Sisi signed a law in May, restricting the operations of (NGOs) in Egypt, according to Farah Al Najar, producer at Al Jazeera.
The law bans both local and foreign groups from engaging in human rights work, under the allegation that it harms national security, public order, public morals or public health, Najar reported.
This is not the first time for the U.S. to withhold financial aid support on Egypt.
In 2013, Barack Obama decided to withhold $260 million in aid to Egypt, before it was resumed in 2015.
Eric Trager, a Fellow at The Washington Institute for Near East policy and an expert on Egyptian politics, told the National that withholding aid is not going to be any more successful this time.
Kushner planned to visit Israel, Jordan and Palestine before going to Egypt.
He has already held a meeting in the Gulf this week.
This trip was intended to discuss the ongoing Israeli- Palestinian negotiations.