Claim of Egypt aid cut-off fuels confusion over Obama policy.

Adding to the confusion over its Egypt policy, the Obama administration reportedly has decided to suspend aid to the military-backed government on a temporary basis -- despite avoiding taking a public position on the matter. 

The Daily Beast reports that, according to a U.S. senator and unnamed administration officials, the administration has temporarily suspended most of the $1.3 billion in military aid, as well as the delivery of weapons and economic aid amid a review of the financial support. 

The move would be a step beyond what the administration acknowledges publicly. To date, officials have said that aid is merely under review, and that they would not make a determination on whether the ouster of ex-President Mohammed Morsi qualifies as a coup -- because such a finding would, under U.S. law, require the administration to cut off aid. 

Yet the Daily Beast report indicates that the administration, for the short-term anyway, is treating the overthrow like a coup in all but name. 

One administration official reportedly told the Daily Beast: "The decision was we're going to avoid saying it was a coup, but to stay on the safe side of the law, we are going to act as if the designation has been made for now. By not announcing the decision, it gives the administration the flexibility to reverse it." 

The office of Sen. Patrick Leahy, D-Vt., seemed to back up this claim. 

But when reached by Fox News, a White House official reiterated: "No decisions have been made to cut or postpone aid other than what we have already announced." 

The conflicting claims, and the possibility that the government has a distinct public and private approach to the crisis in Egypt, only add to the confusion over what the administration's policy actually is. 

Violence exploded in Egypt, as the military and Muslim Brotherhood backers of Morsi clashed in the streets, while President Obama was on vacation in Martha's Vineyard. The president returned to find himself pulled in both directions by vocal members of Congress. Some, like Sen. John McCain, R-Ariz., say the administration should clearly label the ouster a coup and suspend aid. Others argue the administration, despite misgivings about the military's handling of the situation, should nevertheless sustain aid in order to prevent the Brotherhood from taking power. 

Yet the White House and State Department, in public, say their policy of not making a determination on whether a coup had taken place has not changed. 

"We have determined that it is not in the best interest of the United States to make that determination," White House spokesman Josh Earnest said Monday, adding that aid is under review. 

State Department spokeswoman Jen Psaki said a separate New York Times report that said economic aid programs are on hold is incorrect. 

She acknowledged that roughly $585 million in military aid has not yet been obligated.      

"But it would be inaccurate to say that a policy decision has been made with respect to the remaining assistance funding," she said.

Read more: http://www.foxnews.com/politics/2013/08/20/claim-egypt-aid-cut-off-fuels-confusion-over-administration-policy/#ixzz2cWTDPHso