The United States recently announced a decision to withhold up to $290 million in aid to Egypt for failing "to make progress on respecting human rights and democratic norms," Reuters reported.
$95.7 million in aid was denied, while another $195 million was put on hold.
"We have serious concerns regarding human rights and governance in Egypt," an official from Trump's administration said, according to CNN.
"At the same time, strengthened security cooperation is important to US national security."
The U.S. reassures that strengthening ties between the two nations remains a priority, however certain benchmarks for freedom and democracy must be met for financial aid to continue.
The decision comes after a new Egyptian law that "regulates non-governmental organizations that is widely seen as part of a growing crackdown on dissent" was approved by President Abdel Fattah El Sisi.
Human rights groups said the law "effectively bans their work."
Egypt responds
The Ministry of Foreign Affairs of Egypt released a statement via its Facebook page, commenting on the US' decision to reduce its assistance funds.
"Egypt considers this step as a misjudgment of the nature of the strategic relations that binds the two countries over decades, and reflects the lack of understanding of the importance of supporting the stability and success of Egypt. It also underestimates the size and nature of the economic and security challenges facing the Egyptian people, and implies a mixing of cards that may have negative repercussions on achieving Egyptian-American common interests," part of the statement read.
Egypt also canceled a meeting between its foreign minister, Sameh Shoukry, and U.S. presidential adviser Jared Kushner.
The two had been scheduled to meet in Cairo to discuss the Middle East.
Over the past 30 years, Cairo has been given nearly $80 billion in military and economic assistance from the U.S.
Egypt is considered to be the "second largest recipient of military aid from the United States, receiving about $1.3 billion annually," according to AP.
Officials working under the Trump administration said they would not cut support to Egypt, but rather continue to assist the Arab country in its fight against extremists and terrorists. They would also continue to support the country on the economic front.
Sisi once said: 'Western' human rights not applicable in Egypt
In 2016, Sisi said that human rights and civil liberties should not be approached from a "Western perspective," according to Ahram Online.
The comments were made during a meeting with United States' congressional representatives in Cairo.
Sisi assured the delegation that his government is committed to upholding the values of democracy and the rule of law.
The statement came in the midst of a national crackdown on journalists and the press by the Egyptian government.
Human Rights Watch has previously accused Sisi's government of "flagrant abuse of human rights."
Among HRW's list of abuses are "a lack of accountability for many killings of protesters by security forces, mass detentions, military trials of civilians, hundreds of death sentences, and the forced eviction of thousands of families in the Sinai Peninsula."