GAO-15-259, Egypt: U.S. Government Should Examine Options for Using Unobligated Funds and Evaluating Security Assistance Programs

government has provided significant assistance to Egypt since the signing of the Egypt-Israel Peace Treaty in 1979. Almost $64 billion in U.S. security and economic assistance has been allocated to Egypt, with an annual average of about $1.3 billion in security assistance and $245 million in economic assistance since fiscal year 2009. The Department of State and the U.S. Agency for International Development (USAID) are primarily responsible for funding and managing assistance provided to Egypt, while the Department of Defense implements most security assistance. U.S. strategic objectives for Egypt have generally remained constant since fiscal year 2009, with a focus on assisting Egypt to be stable, democratic, and prosperous; upholding the peace treaty with Israel and advancing regional stability; countering terrorism and extremism; and continuing to provide strategic benefits to the U.S. government. However, the U.S. government has adjusted some aspects of its assistance in response to events in Egypt, including increasing its emphasis on democracy and economic growth initiatives after Egypt's 2011 revolution and suspending some assistance after President Morsi's removal in July 2013. As of September 30, 2014, the U.S. government had disbursed or committed almost $7.5 billion (about 80 percent) of over $9.3 billion in assistance allocated for Egypt in fiscal years 2009 through 2014. The majority of this funding came from the Foreign Military Financing and Economic Support Fund (ESF) accounts, with $460 million in unobligated ESF balances for Egypt remaining as of fiscal year 2015. This included $260 million in prior year funding allocated for a cash transfer to Egypt that the administration announced in October 2013 it would not carry out. USAID has evaluated some economic assistance provided to Egypt, but the Department of State has not evaluated the results of billions of dollars in security assistance to Egypt. In May 2014, the Department of State attempted to commission a first-ever evaluation of the results of security assistance to Egypt but received no proposals in response to its solicitation. The Department of State remains committed to completing such an evaluation and is considering alternate approaches. The U.S. government has generally maintained the same strategic objectives and overall levels of assistance for Egypt since fiscal year 2009. However, the U.S. government has faced challenges obligating some funds, with $460 million in unobligated ESF balances for Egypt remaining as of fiscal year 2015. The Department of State and USAID have evaluated economic assistance for Egypt but have not evaluated the results of security assistance. The U.S. government has not established specific time frames for completing an evaluation of security assistance, which is a standard practice in program management. The U.S. government has allocated significant funds for assistance to Egypt, with almost $7.5 billion (about 80 percent) of over $9.3 billion in assistance allocated for Egypt in fiscal years 2009 through 2014 having been disbursed or committed as of September 30, 2014. The majority of this funding came from the Foreign Military Financing and Economic Support Fund (ESF) accounts, with $460 million in unobligated ESF balances for Egypt remaining as of fiscal year 2015. The U.S. government has not evaluated the results of billions of dollars in security assistance to Egypt, which is a critical component of its assistance to Egypt. The U.S. government has a significant presence in Egypt, with the Department of State and USAID being primarily responsible for funding and managing assistance provided to Egypt. The Department of Defense implements most security assistance, and the U.S. government has allocated significant funds for assistance to Egypt, with almost $7.5 billion (about 80 percent) of over $9.3 billion in assistance allocated for Egypt in fiscal years 2009 through 2014 having been disbursed or committed as of September 30, 2014. The U.S. government has not established specific time frames for completing an evaluation of security assistance, which is a standard practice in program management.