WASHINGTON The United States is leaning toward withholding most military aid to Egypt except to promote counter-terrorism, security in the Sinai Peninsula that borders Israel, and other such priorities, a U.S. official said on Tuesday. 
 
 The official said U.S. President Barack Obama had not made a final decision on the issue, which has vexed U.S. officials as they balance a desire to be seen promoting democracy and rights with a desire to keep up some cooperation with Egypt's military. 
 
 The military on July 3 overthrew President Mohamed Mursi, who emerged from the Muslim Brotherhood movement to become Egypt's first freely elected president last year, following the end of Hosni Mubarak's 30-year rule in February 2011. 
 
 Mursi supporters and security forces have repeatedly clashed since, including on Sunday, one of the bloodiest days since the military took power, with state media reporting 57 people dead. 
 
 After Mursi's ouster, the Obama administration said it would suspend about $585 million in military assistance to Egypt pending a wider policy review. 
 
 The U.S. official, who spoke on condition of anonymity, said the Obama administration was now leaning toward continuing to withhold most of that, with the exceptions described above. 
 
 The official said the United States was also leaning toward continuing some economic aid to Egypt, but chiefly funds that go to non-governmental groups rather than to the government itself. 
 
 A second U.S. official, also speaking on condition of anonymity, said a decision on the aid was likely to be made public by the end of the week, although he noted that an announcement has been repeatedly postponed. 
 
 In Cairo, the Foreign Ministry said on Wednesday it had not received any official word from Washington on the issue. 
 
 "The relationship between Egypt and the United States is one of partnership, and not one of donor and recipient," said Foreign Ministry spokesman Badr Abdelatty. 
 
 Egypt for decades has been among the largest recipients of U.S. military and economic aid because of its 1979 peace treaty with U.S. ally Israel, which agreed to withdraw from the Sinai Peninsula it seized from Egypt in 1967 as a result of the pact. 
 
 The United States has long provided Egypt with about $1.55 billion in annual aid, including $1.3 billion in military assistance. 
 
 OBAMA'S DILEMMA 
 
 The removal of Mursi has left Obama with an acute dilemma: whether to get tough with the army for toppling a democratically elected president, albeit an Islamist who had few friends in Washington, or whether to acquiesce in his overthrow. 
 
 U.S. officials have said there has been a sharp debate within the administration for months over the issue, with one saying that the Pentagon had argued for continuing military aid, while others urged a significant reduction. 
 
 At the U.N. General Assembly on September 24, Obama appeared to split the difference, saying the United States would maintain constructive ties with Egypt's interim government despite its anti-democratic moves - including an emergency law and restrictions on opposition parties, the media and civil society. 
 
 He also suggested that some military aid would depend on the interim government embracing a more inclusive democracy. 
 
 "Going forward, the United States will maintain a constructive relationship with the interim government that promotes core interests like the Camp David Accords and counter-terrorism," he said, referring to the U.S.-brokered agreements that led to the Egyptian-Israeli peace treaty. 
 
 "We'll continue support in areas like education that directly benefit the Egyptian people," he added. "But we have not proceeded with the delivery of certain military systems, and our support will depend upon Egypt's progress in pursuing a more democratic path." 
 
 Earlier on Tuesday, CNN had quoted a U.S. official as saying that an "accumulation of events," including the recent violence, had led to the decision on a "full suspension" of aid, a report the White House denied. 
 
 "The reports that we are halting all military assistance to Egypt are false," Caitlin Hayden, a spokeswoman for the White House National Security Council, said in a statement. "We will announce the future of our assistance relationship with Egypt in the coming days, but as the president made clear at (the U.N. General Assembly), that assistance relationship will continue." 
 
 The Pentagon declined all comment. 
 
 Vanessa Murray, a spokeswoman for the U.S. Defense Security Cooperation Agency, which oversees foreign military aid and sales, earlier said there had been no policy change on Egypt. 
 
 Officials at General Dynamics Corp, which makes M1A1 tank kits for Egypt, and Boeing Co, which is building Apache helicopters for the Arab country, said late on Tuesday they had not been notified of any decision to halt military aid. 
 
 There was no immediate comment from Lockheed Martin Corp, which is building F-16 fighter jets for Egypt. Shipments of four F-16s have already been halted temporarily, and eight more jets were due to be delivered in December. 
 
 Two former government officials familiar with foreign military sales have said the Obama administration is likely to curtail certain high-visibility weapons sales, such as the 12 Lockheed Martin Corp F-16s due to be delivered to Egypt this year, to send a message to the military. The planes could be fairly easily adapted for sale to other countries, they said. 
 
 (Additional reporting by Caren Bohan, Roberta Rampton, Andrea Shalal-Esa and Phil Stewart in Washington and Ayman Samir in Cairo; Writing by Arshad Mohammed; Editing by Peter Cooney and Alistair Lyon) 

 The White House is knocking down a report that the Obama administration is ending all military assistance to Egypt. 
 
 "The reports that we are halting all military assistance to Egypt are false," National Security Council spokeswoman Caitlin Hayden said in a statement Tuesday. 
 
 Her comments came after CNN reported, citing an unidentified U.S. official, that the United States would cut off all military aid in response to an "accumulation of events" in Egypt. 
 
 But Hayden's statement doesn't necessarily negate a follow up story from Reuters sourced to a U.S. official who said the administration will withhold most military aid to Egypt while still funding counterterror efforts. In response to a follow-up question, she said she had "no announcements on assistance" to make Tuesday night. 
 
 "We will announce the future of our assistance relationship with Egypt in the coming days," but as President Obama made clear in his speech last month to the United Nations General Assembly, "that assistance relationship will continue," Hayden said. 
 
 Read more about: White House, Egypt 

 Story highlights Spokesperson denies the U.S. is halting all military assistance 
 
 U.S. official: Recent violence against protesters is among the reasons 
 
 Suspension of military aid prompted by "accumulation of events," official says 
 
 Another official says the United States has not yet notified Egypt of the decision 
 
 The United States is preparing to announce a decision "in the coming days" on assistance to Egypt, the White House said Tuesday, and U.S. officials told CNN military aid will be cut, though not all of it. 
 
 The announcement comes in the wake of the July coup against President Mohamed Morsy and the turmoil that has followed as recently as this week, one U.S. official said Tuesday. 
 
 However, some military aid could continue, including funds to uphold Egypt's obligations under its peace treaty with Israel, and money for counterterrorism and security in Sinai, where extremists have been able to set up base, according to a senior U.S. official. The United States will also maintain nonmilitary funding that helps democracy promotion, the official said. 
 
 In an initial report about the announcement, CNN did not specify that these portions of the aid would continue. 
 
 The Obama administration withheld some military aid to Egypt in August. Another U.S. official, speaking on condition of anonymity, said the move to suspend assistance -- more than $1 billion is given each year -- has been prompted by an "accumulation of events," including recent violence against protesters, dozens of whom were killed over the weekend. 
 
 The United States has not yet notified the Egyptians of the decision to cut off military aid, a senior official said. The announcement is not expected to be made on Wednesday and has already been pushed back a few times, the official said. 
 
 Photos: Photos: Unrest in Egypt Photos: Photos: Unrest in Egypt Unrest in Egypt – A bus passes a destroyed pickup truck with loudspeakers that was used by supporters of ousted Egyptian President Mohamed Morsy on Friday, August 2. The supporters and security forces clashed in Sixth of October City in Giza, south of Cairo, after the government ordered their protest camps be broken up. Look at the latest violence in Egypt. Hide Caption 1 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters walk past makeshift roadblocks at Rabaa al-Adawiya Square in Cairo on Saturday, August 3. Security forces set up the roadblocks outside the square, allowing people to leave but not enter, as they attempt to break up camps set up during ongoing protests over Morsy's ouster. Hide Caption 2 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters run among the smoke and fire resulting from clashes with security forces in Sixth of October City in Giza on August 2. The military ousted Morsy, Egypt's first democratically elected president, in early July after days of mass demonstrations. Dozens of Morsy backers angry at Egypt's military-backed government have died in weekend violence in the volatile nation's capital. See photos of protests that have engulfed the country. Hide Caption 3 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptian riot police block the entrance to Sixth of October City in Giza on August 2 following clashes with Morsy supporters. Hide Caption 4 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters in red helmets march during a protest against the government in Cairo on August 2. Pro-Morsy marches began after Friday prayers, when supporters made their way back to their camp outside the Rabaa al-Adawiya mosque. Hide Caption 5 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters march in a demonstration against the Egyptian government in Cairo on August 2. Hide Caption 6 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of Egypt's deposed President Mohammed Morsy gather for prayers at Nasr City, where protesters have installed a camp and hold daily rallies, in Cairo, on Sunday, July 28. Hide Caption 7 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A boy wears a tear gas mask as supporters of Egypt's ousted President Mohammed Morsy pray at the camp set up by supporters in the Nasr City area of Cairo on July 28. Hide Caption 8 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Doctors treat an injured supporter of deposed Egyptian President Mohamed Morsy during clashes with security forces in Cairo on Saturday, July 27. Hide Caption 9 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A wounded Morsy supporter lies on the floor of a field hospital in Cairo on July 27. Thousands of Morsy supporters gathered Saturday in the Nasr City neighborhood despite dozens of deaths the night before and veiled threats from the military. Hide Caption 10 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of Morsy protest outside a field hospital in Cairo where the bodies of slain Morsy supporters have been brought July 27. Hide Caption 11 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – The body of a Muslim Brotherhood protester, reportedly shot dead after violence erupted the night before, is moved as mourners watch inside a field hospital in Cairo on July 27. Hide Caption 12 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Two men mourn Morsy supporters who were killed in overnight clashes with security forces, in Cairo, on July 27. Hide Caption 13 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A medic pauses at a field hospital in Cairo on July 27 after tending to the bodies of Morsy supporters reportedly killed in fighting. Hide Caption 14 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of Morsy carry an injured man to a field hospital amid clashes with security forces in Cairo on July 27. Hide Caption 15 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Doctors treat a Morsy supporter injured during clashes with security forces in Cairo on July 27. Hide Caption 16 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of Morsy rally in Giza, on Friday, July 26. Hide Caption 17 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of the Egyptian military rally at Tahrir Square in Cairo on Friday, July 26. Hide Caption 18 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy opponents rally in Cairo on July 26. Hide Caption 19 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy opponents watch a demonstration from a rooftop near Tahrir Square in Cairo on July 26. Hide Caption 20 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptian soldiers stand guard atop an armored vehicle on a bridge leading to Cairo's Tahrir Square on Friday, July 26. Hide Caption 21 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy advocate builds a giant portrait of the deposed president Thursday, July 25, while other supporters hold a sit-in outside a Cairo mosque. The military has detained Morsy while an interim government takes shape. Hide Caption 22 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters say evening prayers during a rally July 25 outside a Cairo mosque. Hide Caption 23 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A man with a pistol and other Morsy opponents detain a suspected Morsy supporter who was wounded during clashes in Cairo on Monday, July 22. Supporters and opponents clashed near the city's Tahrir Square. Hide Caption 24 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Men evacuate an injured opponent of Morsy during clashes with his supporters in Cairo on July 22. Hide Caption 25 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A man fires a gun during clashes between opponents and supporters of Morsy in Cairo on July 22. Hide Caption 26 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A riot police officer aims rubber bullets toward Morsy supporters in Cairo on July 22. Hide Caption 27 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Riot police evacuate an injured anti-Morsy protester in Cairo on July 22. Hide Caption 28 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy supporter, center, who was allegedly beaten by opponents of Morsy runs during clashes in Cairo on July 22. Hide Caption 29 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy opponent carries his injured friend in Cairo on July 22. Hide Caption 30 of 83 Photos: Photos: Unrest in Egypt Photos: Unrest in Egypt – Supporters of Morsy pause for Friday prayers on July 19 at Nasr City in Cairo, where protesters have installed their camp and held daily rallies. Hide Caption 31 of 83 Photos: Photos: Unrest in Egypt Photos: Unrest in Egypt – Morsy supporters take part in a protest march near government ministry buildings on Wednesday, July 17, in Cairo. Hide Caption 32 of 83 Photos: Photos: Unrest in Egypt Photos: Unrest in Egypt – A Morsy supporter is held back by riot police during a rally near Tahrir Square on July 17. Hide Caption 33 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A supporter of the Muslim Brotherhood and of Morsy covers his mouth under the 6th October Bridge in Cairo on Tuesday, July 16. Hide Caption 34 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A riot police officer fires tear gas toward Morsy supporters during clashes in Cairo on Monday, July 15. Hide Caption 35 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters run from tear gas in Cairo on July 15. Hide Caption 36 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptians in Cairo's Tahrir Square pray before breaking their fast on the third day of Ramadan, the sacred holy month for Muslims, on Friday, July 12. Hide Caption 37 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of the deposed Morsy rally in Nasr City, Egypt, a suburb of Cairo, on Monday, July 8. Hide Caption 38 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A man reacts after seeing the body of a family member at the Liltaqmeen al-Sahy Hospital in Cairo, allegedly killed during a sit-in supporting Morsy in front of the Republican Guard headquarters on July 8. Hide Caption 39 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Injured men receive medical attention after clashes between supporters of Morsy and security forces in Cairo on July 8. Hide Caption 40 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Opponents of Mohamed Morsy gather at Tahrir Square during a protest in Cairo on Sunday, July 7. Hide Caption 41 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters of Morsy pray next to the headquarters of the Republican Guards in Cairo on Saturday, July 6, during the funeral of seven people killed during clashes. Hide Caption 42 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – People carry coffins on July 6 of two Morsy opponents who were killed during clashes in Cairo. Hide Caption 43 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy supporter joins protests near the University of Cairo in Giza on July 6. Hide Caption 44 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Supporters and opponents of Morsy clash in Cairo on Friday, July 5. Hide Caption 45 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A protester is attended to in Cairo's Tahrir Square during fighting between the pro- and anti-Morsy crowds on July 5. Hide Caption 46 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – An Egyptian military helicopter hovers over supporters of the Muslim Brotherhood and deposed President Mohamed Morsy in Cairo on July 5. Hide Caption 47 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters hold up their bloodstained hands after Egypt's armed forces opened fire on rally in front of the Republican Guard headquarters in Cairo on July 5. Hide Caption 48 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters carry a man who was shot during clashes next to the Republican Guard headquarters in Cairo on July 5. State broadcaster Nile TV said a number of those backing the deposed leader were wounded as they tried to storm the headquarters, where Morsy reportedly was being held. Hide Caption 49 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A wounded man is helped following the gun battle outside the headquarters of the Republican Guard on July 5. Hide Caption 50 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptians hold portraits of Gen. Abdel-Fatah El-Sisi reading "Come down, Sisi" as they gather in Cairo's landmark Tahrir Square on July 5. Hide Caption 51 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters react to an explosion during clashes with police officers on July 5 outside Cairo University in Giza. Hide Caption 52 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptian Army soldiers stand guard at the Cairo headquarters of the Republican Guard on July 5 as an Apache attack helicopter flies overhead. Hide Caption 53 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Morsy supporters pray near the University of Cairo in Giza on July 5. Hide Caption 54 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A man prays on July 5 before the protest near the University of Cairo. Hide Caption 55 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Protesters take cover from tear gas during clashes outside the headquarters of the Republican Guard in Cairo on July 5. Hide Caption 56 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A military helicopter flies by Egypt's Presidential Palace in Cairo on July 5. Hide Caption 57 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptians watch fireworks in Tahrir Square on Thursday, July 4, the day after Morsy's ouster. Hide Caption 58 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – People dance and cheer in the streets of Cairo on July 4. Hide Caption 59 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy supporter holds a poster of the deposed president during a July 4 rally in Nasr City. Hide Caption 60 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A massive crowd gathers in Tahrir Square on July 4. Hide Caption 61 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptians cheer and wave national flags as airplanes fly above Tahrir Square on July 4, leaving a trail of smoke in the colors of the national flag. Hide Caption 62 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A woman uses a mobile phone to record the July 4 celebrations in Tahrir Square. Hide Caption 63 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – An opposition protester chants slogans against Morsy near Cairo University, where Muslim Brotherhood supporters gathered on July 4 to show support for the ousted president. Hide Caption 64 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A man holds a newspaper near Mesaha Square in Cairo on July 4. Hide Caption 65 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Dejected Morsy supporters attend a rally in Nasr City on July 4. Hide Caption 66 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy supporter shows his bloodied shirt during a July 4 rally near the University of Cairo. Hide Caption 67 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A young Egyptian boy shoots off fireworks during celebrations in Tahrir Square on July 4. Hide Caption 68 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – People walk by a pile of Egyptian flags for sale in Tahrir Square on July 4. Hide Caption 69 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Crowds throng Tahrir Square on July 4. Hide Caption 70 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Egyptian soldiers deploy near Cairo University on July 4. Hide Caption 71 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – People dance and cheer at Tahrir Square in Cairo on July 4. Hide Caption 72 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Adly Mansour, center, stands after delivering a speech during his swearing-in ceremony as Egypt's interim president in the Supreme Constitutional Court in Cairo on July 4. Mansour has served as the head of the country's Supreme Constitutional Court. Hide Caption 73 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Armored vehicles with the Egyptian army sit at a checkpoint in the Cairo district of Nasr City on July 4. Hide Caption 74 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A Morsy supporter reacts as a military helicopter flies over during a July 4 rally in Nasr City. Hide Caption 75 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A boy with face paint the color of the Egyptian flag pauses on July 4 in Tahrir Square. Hide Caption 76 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A pedestrian shakes hands with a member of the military at a roadblock in Giza. Hide Caption 77 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Security personnel rest on July 4 in Tahrir Square. Hide Caption 78 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A man walks to Tahrir Square on July 4. Hide Caption 79 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A family sleeps on a bridge near Tahrir Square on July 4. Hide Caption 80 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – A member of the Egyptian military redirects traffic on July 4 at a roadblock in Giza. Hide Caption 81 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – Bread is sold near Tahrir Square on July 4. Hide Caption 82 of 83 Photos: Photos: Unrest in Egypt Unrest in Egypt – An Egyptian military member guards a roadblock in Giza on July 4. Hide Caption 83 of 83 
 
 JUST WATCHED Could U.S. aid cuts change Egypt? Replay More Videos ... MUST WATCH Could U.S. aid cuts change Egypt? 03:44 
 
 JUST WATCHED Cairo street protests turn deadly Replay More Videos ... MUST WATCH Cairo street protests turn deadly 02:42 
 
 JUST WATCHED Deadly clashes erupt in Egypt Replay More Videos ... MUST WATCH Deadly clashes erupt in Egypt 01:29 
 
 In a statement late Tuesday, National Security Council spokeswoman Caitlin Hayden said an announcement is coming soon but denied the United States is "halting all military assistance." 
 
 "We will announce the future of our assistance relationship with Egypt in the coming days, but as the president made clear at UNGA, that assistance relationship will continue," Hayden said in a statement. 
 
 Any decision to cut aid would not preclude resuming the aid should Egypt make what the United States believes are positives steps towards restoring democracy, officials said. 
 
 U.S. national security advisers recommended to the president last month that aid should be cut, U.S. officials told CNN in September. The recommendation, officials said, was made in a "principals meeting" of the president's national security team, including National Security Adviser Susan Rice, Secretary of State John Kerry and Defense Secretary Chuck Hagel. The meeting was the culmination of months of debate within the administration about how to respond to the July 3 ouster of Morsy, Egypt's first democratically elected leader. 
 
 In addition to the suspension of some military aid earlier this year, there has also been a severe slowdown in military shipments from the United States to Egypt, including F-16s. 
 
 The Obama administration has not labeled Morsy's removal from office a coup. Such a designation would require a cut in all but humanitarian aid. In the past, the White House has said it was in U.S. national security interests to keep the aid intact. 
 
 But after U.S. calls to the Egyptian military for restraint over the last few months were met with a heavy-handed crackdown on Morsy supporters, Obama canceled a joint military exercise and announced a new review of U.S. aid to Egypt. 
 
 "This has been coming for quite a while, actually, and President Obama signaled that the United States was slowing down aid to Egypt in his address at the United Nations just a couple of weeks ago," said Robin Wright, an Arab affairs analyst at the Woodrow Wilson International Center for Scholars. "The United States has become increasingly disillusioned with the way that the military leadership has cracked down on its own people. Over 1,000 died in the early weeks after the military coup, and in the past week, you've seen dozens more killed in confrontations." 
 
 CNN senior international correspondent Ben Wedeman said in the short-term, the U.S. decision could have a positive impact on the Egyptian government. 
 
 "Immediately, probably, the Egyptian government is going to find it's going to gain somewhat in terms of local public opinion," Wedeman said. "Egyptians I've already been in touch with about this decision or announcement from the United States that it's going to cut aid seem to react positively. There seems to be a lot of frustration with the United States, given its role in Egypt over the last 2½ years since the revolution." 
 
 But don't expect to see Egypt's military hurting financially, Wedeman said. 
 
 "For the Egyptian government, a cutoff in U.S. aid is symbolically significant, but in terms of the actual amount of money they're getting, it will not make a big difference," he said. 
 
 Wedeman said that's because Gulf states have been pouring billions of dollars into Egypt since Morsy's ouster. A move to cut off aid would likely anger those Gulf allies who have urged the United States to support the military and warned against stopping assistance.
– The White House is refuting reports from last night that it's leaving Egypt swinging in the wind, with a National Security Council spokeswoman today telling Politico that "the reports that we are halting all military assistance to Egypt are false." She added: "We will announce the future of our assistance relationship with Egypt in the coming days," but as President Obama made clear in his speech last month to the United Nations General Assembly, "that assistance relationship will continue." CNN, citing a US official, had reported the Obama administration is about to stop giving financial aid to Egypt after an "accumulation of events," including government clashes with protesters that left 38 dead on Sunday. (More than 500 were estimated dead in just one day of violence in August.) However, Politico notes, a follow-up Reuters story also citing a US official claimed most military aid would be withheld, but counterterror efforts would still be funded; the spokesperson would not comment on that report and simply promised clarification "in the coming days," adding that an "assistance relationship will continue." Some reports said Washington quietly cut off military aid to Egypt a couple of months ago, with Saudi Arabia picking up the slack.