The White House said on Tuesday that media reports suggesting that the United States has cut aid to Egypt are inaccurate.
President Barack Obama is expected to hold a Cabinet-level meeting to discuss the issue, according to White House spokesman Josh Earnest.
"That review has not concluded and ... published reports to the contrary that assistance to Egypt has been cut off are not accurate," Earnest told reporters in a briefing.
Earlier Tuesday, the Daily Beast reported that the U.S. government has temporarily suspended most forms of military aid to Egypt, despite deciding not to announce publicly that the ouster of Mohammed Morsi was a coup.
The office of Sen. Patrick Leahy (D-VT), the head of the Appropriations State and Foreign Operations Subcommittee, confirmed to the website that military aid to Egypt has been temporarily cut off.
According to the website, the Obama administration has decided to temporarily suspend the disbursement of most direct military aid, the delivery of weapons to the Egyptian military, and some forms of economic aid to the Egyptian government, while it conducts a broad review of the relationship with Egypt, according to the report.
Israeli sources told the Al Arabiya network Tuesday that Obama has indeed quietly halted aid to Egypt to meet Congressional demands and send a message to Egypt’s General Abdel Fattah al-Sisi.
The decision, however, technically means nothing, the sources said, because the $585 million of promised aid to the Egyptian military in 2013 is not due until September 30, giving Obama more time to maneuver.
The United States said on Monday it has not yet made a decision on whether to freeze economic assistance to Egypt
There are reports that Israel is conducting a diplomatic offensive against the cutting off of U.S. aid to Egypt. Israeli diplomats are reportedly trying to convince Americans and Europeans that while the military-backed government in Egypt is bad – the alternative is much worse.