CAIRO: In response to the Egyptian governments demands that the United States move away from funding civil society organizations, Washington has deducted $10 million from an annual aid package fro 2010 aimed at buttressing human rights and civil society organizations not registered with the Egyptian government. The move has left rights groups sour over the current state of aid and civil society in Egypt. Project on Middle East Democracy, a Washington-based research center that monitors Congress' budget regarding Middle East funding, argued that those organizations that chose not to register with the Egyptian government will be the biggest losers. America in Arabic news organization reported that a number of groups in Egypt are currently looking into other financing means. It is unclear what funding will be available, however, for non-registered organizations in 2010. The Washington-based organization added that the American administration is responding to the Egyptian governments demands of not providing bilateral aid directly to civil groups that are not part of the government's NGO register. In its report, titled “The Federal Budget and Appropriations for the Fiscal Year 2010,” released in late July, Project on Middle East Democracy said a group of Egyptian local organizations, including international organizations such as Freedom House , The National Democratic Institute for International Affairs and the International Republican Institute were among the recipients of such funding in recent years. “The elimination of this funding is temporary and the administration is aiming to develop a new long-term strategy for the financing of non-registered NGOs in Egypt,” an American administration official was quoted as saying by America in Arabic. In comments carried by Al Masry Al Youm, Aziza Yusuf of the Egyptian Ministry of Social Solidarity, stressed that there had been numerous consultations with the American administration before the aid was slashed. “The results of the negotiations were positive and these results emerged when the American Ambassador in Cairo, Margaret Scobey announced that U.S responded to the Egyptian demands.” Hafez Abu Seada, Secretary-General of the Egyptian Organization for Human Rights, confirmed to local press that those funds were directed at supporting non-profit, licensed “civil organizations” and these organizations used to get the financial support through the American embassy in Cairo and through annual American aid. **reporting by Mohamed Abdel Salam BM