The aid Egypt receives from the United States is mandated and goes back to the Camp David agreement and the signing of the Egyptian-Israeli peace treaty in 1979. President Jimmy Carter committed aid to both Egypt and Israel in order to maintain peace in the region between Egypt, along with other Arab states, and Israel. While Morsi, who has ties to the Muslim Brotherhood, may have been democratically elected, in November 2012 he granted himself unlimited powers to legislate without judicial review or oversight. Hundreds of thousands of protestors forced him to annul his decree, but he continued to expand Islamic laws in Egypt. In late June nearly 20 million people (25% of the entire population of Egypt) took to the streets to protest and demand the ouster of Morsi. Although the military ousted Morsi, they did it at the insistence of the people of Egypt. While technically a coup, the people of Egypt do not consider it to be one. I believe the people realized Morsi was not who he claimed to be when he ran for president and did not like the way he was converting the country to a rigid Islamic state.
Our government was on the wrong side in supporting Morsi’s presidency knowing his ties to the Muslim Brotherhood, which under Mubarek was illegal to operate in Egypt because of its radical nature. We should not be so quick in pulling the aid we provide to Egypt. It is tied to the peace treaty with Israel and pulling this aid could jeopardize this agreement.
An interesting video appeared recently from Egypt, asserting the military ouster was not a coup, but the will of the people. He speaks in English starting at the 40 second mark, and can be viewed here.