A law passed by Congress in December forbids funding unless the State Department certifies that Egypt is making progress in basic freedoms and human rights.

But Secretary of State Hillary Rodham Clinton is close to announcing plans to bypass those restrictions on national security grounds for fear of worsening already fraying ties with Egyptian leaders and disrupting American jobs and U.S. defense contracts that make up the bulk of the military aid, according to senior administration officials and others, who have been briefed on the deliberations but were not authorized to speak publicly.

The plan, which could be announced as early as next week and was first reported Friday by the New York Times, would not hand over the full $1.5 billion all at once, as has been the practice for decades. It would instead dole out smaller portions in order to preserve leverage over Egyptian officials and maintain ongoing defense contracts, officials said. And with a presidential election coming in Egypt, U.S. officials are hesitant to release the full amount until they see what kind of government will be receiving the money.