U.S. Secretary of State John Kerry says the Obama administration is rewarding the Egyptian government with financial aid because of Cairo's promises of economic and political reforms.

Kerry says the U.S. is providing $190 million immediately as part of a larger pledge of $450 million over time.

Kerry says the money reflects Egypt's "extreme needs" and President Mohammed Morsi's commitment to satisfying conditions to close a $4.8 billion package of International Monetary Fund loans.

Kerry also says that a separate $60 million is for a new fund to provide direct support to Egyptian entrepreneurs and young people.

The announcement of the aid came after Kerry's meeting Sunday with Morsi.