America is suspending hundreds of millions of dollars worth of aid to Egypt.
The White House says money has been withdrawn until progress is made towards a democratically-elected government.
Military aid in particular is being reduced.
Advertisement
The U.S. will now withhold the delivery of various contracts involving large-scale military assistance including F16 fighter jets, M1 Abrams tank parts, Harpoon missile systems and Apache helicopters will be withheld from the Egyptian Army.
Watch White House spokesman Jay Carney explain the Egyptian decision at 6 minutes below: