Several American citizens have taken shelter in the U.S. Embassy in Cairo amid a sharpening dispute between Washington and Egypt's military-led authorities over U.S.-funded pro-democracy groups in the country, the State Department said on Monday.
"We can confirm that a handful of U.S. citizens have opted to stay in the embassy compound in Cairo while waiting for permission to depart Egypt," State Department spokeswoman Kate Starr said.
According to The New York Times, colleagues confirmed at least two American citizens were being protected at the embassy from potential arrest.
The unusual step of offering U.S. citizens diplomatic refuge follows Cairo's crackdown on non-governmental organizations, including several funded by the U.S. government, which saw travel bans imposed on six American staffers including a son of U.S. Transportation Secretary Ray LaHood.
State Department officials said they did not believe the Americans were in any physical danger, but said they had "concerns given the fact that they want to leave the country and were disallowed."
"There is no expectation any of these individuals are seeking to avoid any kind of judicial process," State Department spokesperson Victoria Nuland said. "Our view is that these people ought to be able to travel freely, that we need to expedite the process of whatever kind of formal registration is ultimately going to be allowed for them, if their property needs to be returned, and that it is in the interest of Egypt's democratic transition not only for international democracy NGOs to be able to operate but for Egyptian democracy NGOs to be able to operate, and that they have already played a strong role in supporting the good elections that have already taken place, and there are more elections coming up."
Raids and crackdown
Egyptian police first raided the groups in late December as part of an investigation into foreign funding of 17 pro-democracy and human rights groups, part of what civil society groups say has been a broader crackdown on critics of the army's heavy-handed tactics in dealing with street unrest.
Washington has strongly criticized the Egyptian move, which has cast a pall over U.S.-Egypt relations as the most populous Arab nation reaches a critical stage in its uncertain transition away from authoritarian rule.
Leading U.S. lawmakers have also voiced outrage over the incident, and American officials have repeatedly warned that Washington may have to take a fresh look at U.S. aid to Egypt's military, which now runs about $1.3 billion per year.
The six U.S. citizens hit with travel bans work with the National Democratic Institute and International Republican Institute. Both receive U.S. public funding and are loosely affiliated with the two major political parties in Washington.
The State Department did not provide details on the Americans sheltering in the embassy, although officials at the NDI said none of their staff had been relocated.
U.S. officials said an Egyptian military delegation was expected in Washington this week for regular talks, which are nevertheless expected to focus in large part on the impasse over the NGOs.
U.S. expresses concern over restrictions
President Barack Obama spoke with the head of Egypt's ruling military council, Field Marshal Hussein Tantawi, on January 20 and stressed the importance of the NGOs, as well as Egypt's request for $3.2 billion in support from the International Monetary Fund.
In a weekend call to Tantawi, U.S. Defense Secretary Leon Panetta urged the Egyptians to take steps to lift the travel ban on Americans wishing to leave the country, and expressed concern over restrictions placed on NGOs, the Pentagon said.
The Obama administration is finalizing its budget for the 2013 fiscal year, which will be presented on February 13 and is expected to include continued assistance for Egypt's military, albeit subject to new conditions imposed by U.S. lawmakers.
Those include evidence that Egyptian military authorities are committed to holding free and fair elections and implementing policies to protect freedom of expression, association, and religion, and due process of law.
Reuters and The Associated Press contributed to this report.


Looks like I see 3 places we can save money! Why are we giving economic and military aid to Egypt? Seriously we are are allowing the two knuckle-headed parties to use US funds for pro-democracy in these kind of countries! What a waste of borrowed money. Didn't they learn anything from the Tinamin Square Massacre in China? As long as someone can make a buck our government really doesn't care how many of their citizens get slaughtered.
The problem is, for some reason, most likely oil, we have married ourselves to most of the ME nations; for better or for worse, in sickness and in health...................................
A few of our relationships in the ME maintain viability, most of them are crumbling like month old bread and I don't believe any of them are so stable that we shouldn't have "energy plan B" in the works and well advanced.
I'm sure we're ready..after all, we've been talking since the early 70s about the need for a Plan B, i'm sure our politicians (of both parties) have succeeded, after all, they've had plenty of time!
Is CIA paying them to meddle in Egypt so they love our allies like Mubarak did ? No democracy in the U.S. , but lots of talk of democracy by U.S. citizens there ? Why not just tell Egyptians that we are ruled by oligarchs that get rich on endless wars , at least we would be honest. The Muslim Brotherhood is funded by the U.S. so the people in the ambassy probably will get immunity from prosecution. Do not worry.
well maybe the events in egypt are not turning out great but i still have great hope for lybia.in a few years if things go just right,lybia could be a country without national debt,free health care which is even better than universal health care,cheap university and be considered the most improved country in africa by theu.n.
So the state dept want them to be more tolerant of outside influences that seek to change their chose of government, this cant be the same government that is on record for putting its own citizens on a watch list because they support 3rd party candidates .
Just like the state dept to send family of high ranking members and expect a red carpet and rose petals were ever they walk.
without looking up the stats i bet infant mortality rates and life expectancy in lybia was better two years ago than it will be five years from now.
There is oil inthe sea outside Alexandria, you be surprised how many american companies are drilling there.
Recarding oil shipping, most mega tankers go around the Cape, the were develloped after the last suez crises the new mega containerships will be to big too.
I remember going through the suez canal in one of the last ships before it was closed in the war of 1956 (I was 8 then).
This would never have happened under Reagan or Bush. The Egyptians have no respect for Obama, nor should they.
Obama wants Speed up More money for Egypt
WAY TO GO OBAMA
Vote Obama Out 2012
NO AID NO TRADE NO IMMIGRATION. Let them for once sort their own country out. The best solution is to send every Muslim in western countries to Israel and bring every Jew to America but since that will never happen we are headed for a nuke meltdown.
Best to get out of the way and offer at least visa's to any Jewish person who wants to quickly leave Israel.
China and Russia think they can deal with them -- let them. It is obvious China and India have a surplus of people to sacrifice in ground warfare and Americans are sick of paying for the Elite's profit driven war machine.
We've supported Mubarak a ruthless dictator there for years, we funded a military and provided training to them. What is it that is so surprising about their hatred for Americans ? One reaps what one sows.
And this is the regime that Obama wants to hand over to even more billions of our dollars that we don't have. Giving money we have to borrow to support the Islamic extremists who are about to take power in Egypt could rank up there with some of the other destructive, anti-American policies Obama has launched. The Muslim brotherhood, which will control Egypt, has stated that America is their enemy and that they want to destroy us.
Cut off aid...now. No excuse for the travel restrictions.
Time for a no-fly zone lead from behind President Quatro to take action.
Egypt when/ if it becomes a democratic state, would be a greater asset to the U.S. in terms of global business ventures due to the fact that once up and running egypt is quite wealthy for being a ME country. Along with this having the U.S. tied to the history of egypt becoming democratic would make the u.s. look better in some ways but either way the u.s. is meddling in issues not it's own and should leave this to the egyptian people because already egyptians are turning on americans how much more bitter opinions and feelings do we want towards our own nation and government?
This is one of those: "I told you so" moments.