The July 3 coup in Egypt: What the law says

Excerpt from the Consolidated Appropriations Act of 2012:

Coups d'etat

Sec. 7008. None of the funds appropriated or otherwise made

available pursuant to titles III through VI of this Act shall be obligated or expended to finance directly any assistance to the

government of any country whose duly elected head of government is deposed by military coup d'etat [added emphasis] or decree or, after the date of enactment of this Act, a coup d'etat or decree in which the military plays a decisive role: 

Provided, <> That assistance may be resumed to such government if the President determines and certifies to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office: Provided further, That the provisions of this section shall not apply to assistance to promote democratic elections or public participation in democratic <> processes: 

Provided further, That

[[Page 125 STAT. 1196]]

funds made available pursuant to the previous provisos shall be subject to the regular notification procedures of the Committees on Appropriations.

What the White House says:

"I'm being very clear with you ... this is a complex and difficult issue with significant consequences," Carney said during his daily briefing, the first since Egypt's military ousted Morsi nearly a week ago. Calling the action a coup could cut off more than $1.5 billion in annual U.S. foreign aid for Egypt.
But the Obama administration is reluctant to cut off aid. "We think it would not be in the best interests of the United States" to change its aid program at this time, Carney said. Asked if that would mean the administration would be cutting off aid in the near-term, Carney repeated his response: "we think that would not be in our best interests."