A Trump administration report is accusing Egypt of human rights abuses and anti-democratic actions.
It says Egypt is failing to protect free speech and its minorities, investigate abuses by its forces or grant US monitors access to the conflict-ridden Sinai Peninsula.
This comes before President Donald Trump meets Egyptian President Abdel-Fattah el-Sissi in New York on Wednesday.
Last month, the Trump administration cut nearly $100 million in aid to Egypt. The country is a key counterterrorism partner that has repeatedly run afoul of the US over its human rights record.
But the administration said Egypt would still receive almost $200 million more in military financing, on a delayed basis, if it makes improvements, such as easing restrictions on civic groups.