In July, a mini-crisis of sorts erupted between Egypt and the United States over foreign funding. The spark was probably the congressional testimony of the new US ambassador to Cairo, Anne Patterson, in June, in which she said that the US was earmarking $40m for USAID democracy and governance spending.
By late July, the $40m figure was being cited in the Egyptian media, and sometimes was inflated to $60m, the figure that the US State Dept. had considered spending earlier in the year. Public records showed that most of the money went to the National Democratic Institute (NDI), the International Republican Institute (IRI) and the International Federation for Electoral Systems (IFES) — some of which they no doubt redistributed to local partners. The media began to raise up a storm, while the government demanded clarifications from the US.