The US State Department said Thursday it was unconditionally releasing $1.3 billion in military aid to Egypt, at a time when Cairo and Washington have been working closely on a Gaza ceasefire deal.

Last year, the United States had made the release of part of this annual aid conditional on progress being made on respecting human rights in Egypt, a country where ruler Abdel Fattah al-Sisi has been accused of suppressing dissent.

This year, however, the State Department said Egypt had made "progress" in certain areas of human rights. It also explicitly mentioned Cairo's help in mediating between Israel and Palestinian armed group Hamas on the war in Gaza.

"This decision is important to advancing regional peace and Egypt's specific and ongoing contributions to US national security priorities, particularly to finalize a ceasefire agreement for Gaza," a State Department spokesman said.

The United States, Egypt and Qatar are parties to the negotiations for the release of the hostages held by Hamas since its attack on Israel on October 7, and on the cessation of a subsequent Israeli military operation in Gaza that has killed tens of thousands.

The State Department spokesperson also spoke of Egypt's role "in promoting a ceasefire in Sudan," where a civil war has been raging for more than 16 months.

US Secretary of State Antony Blinken announced the budget allocation in a memo to Congress, as required by US law.

Washington regularly criticizes Egypt's human rights record and has conditioned part of its annual military aid. Last year, Washington suspended around $95 million in aid on the grounds of human rights concerns.

Since 2022, Egyptian President Sisi has relaunched a "national dialogue" and released hundreds of political prisoners, but human rights activists say at least three times as many people have been arrested in the same period.

A key US ally, Egypt still holds tens of thousands of political prisoners, many of whom live in extremely harsh conditions, according to NGOs.

"In certifying that Egypt has fulfilled the conditions, the United States is acknowledging steps the Egyptians have already taken" on human rights, the State Department spokesperson said.

They cited draft legislation on judicial reforms and the release of more than 950 political prisoners since September 2023, among other steps.