Updated August 27, 2020
Lebanon
Lebanon, a country of 5.5 million people, faces the worst
reduced authorities until a new prime minister is appointed
economic crisis in its history amid ongoing political unrest,
and forms a new government, a potentially lengthy process.
the spread of COVID-19, and an August 2020 explosion
that severely damaged the port of Beirut and surrounding
Figure 1. Lebanon
areas. Lebanon hosts the largest number of refugees in the
world per capita (over one million, mostly Syrians), which
has raised social tensions and strained public services. U.S.
policy toward Lebanon has focused on countering the
influence of Iran and Hezbollah, and on bolstering the
Lebanese state—while calling for reforms to counter
corruption and mismanagement.
Government
Lebanon’s confessional political system divides power
among its three largest religious communities (Maronite
Christian, Sunni, Shi’a), to which it allocates the posts of
president, prime minister, and parliamentary speaker,
respectively. Lebanese President Michel Aoun was elected
in 2016 by Lebanon’s parliament for a six-year term. Aoun
is affiliated with the Christian Free Patriotic Movement
(FPM), which along with Hezbollah and the Shi’a Amal
Movement comprise the major components of the March 8
political bloc. Parliamentary elections in 2018 gave the
bloc, which advocates friendly ties with Iran and Syria, a
simple majority (68 out of 128 seats). The United States has

maintained ties with March 8’s political rival, known as the
Source: Created by CRS using ESRI, Google Maps, and Good
March 14 bloc, which includes the Future Movement
Shepherd Engineering and Computing.
(Sunni), the Lebanese Forces, and Kataeb (both Christian).
Beirut Port Explosion & Investigation
2019 Government Collapse
On August 4, 2020, a massive explosion at the port of
Former Prime Minister and Future Movement leader Saad
Beirut killed over 190 people, injured thousands, and
Hariri formed a government in January 2019. The 30-
displaced 300,000 people. Lebanese officials linked the
member Hariri cabinet was majority March 8, reflecting the
explosion to 2,750 tons of ammonium nitrate that had been
results of the 2018 legislative elections, but parties expected
confiscated from a disabled cargo ship in 2014 and stored in
to align with March 14 held 11 seats. In October 2019,
a warehouse at the port. According to the government, the
Hariri resigned amid mass protests against state corruption,
initial cause of the explosion was a welding accident at the
ineptitude, and economic mismanagement, triggering the
port, but many Lebanese blamed the blast on government
collapse of the government.
negligence and mismanagement. Lebanon has named a
military judge to lead the investigation into the cause of the
2020 Diab Government Resignation
blast; some Lebanese have questioned his independence
In January 2020, Lebanon formed a new government under
from political elites who were aware of the presence of
Prime Minister Hassan Diab. The 20-member Diab cabinet
explosives at the port but took no action. To date, charges
was the first since 2005 composed entirely of parties from a
have been filed against 25 people, none of whom is a
single political bloc (March 8). Parties affiliated with
minister or political official. An FBI team was dispatched to
March 14, which opposed Diab’s nomination on the
Lebanon in mid August to assist with the investigation.
grounds that he was selected by Hezbollah allies over the
Hezbollah
objection of Lebanon’s largest Sunni party, boycotted the
Hezbollah, a U.S.-designated Foreign Terrorist
government. The new cabinet described itself as
Organization (FTO), operates in Lebanon as a militia force,
technocratic and most ministers were not career politicians.
a political party, and a provider of social services. It is
However, most had ties to established political parties and
closely linked to Iran, which provides it with significant
lacked the ability to operate independently from party
funding and has used it as a proxy or allied force to threaten
leaders. On August 10, Prime Minister Diab resigned in the
Israel. While Israel withdrew in 2000 from areas of
wake of the August 4 explosion at the port of Beirut. His
southern Lebanon it had occupied since 1982, Hezbollah
government will remain in a caretaker capacity with
has used the remaining Israeli presence in disputed areas in
the Lebanon-Syria-Israel triborder region to justify its
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Lebanon
ongoing conflict with Israel and its continued existence as
bank’s financial position. U.S. and European officials have
an armed militia alongside the Lebanese Armed Forces
conditioned their support for an IMF program for Lebanon
(LAF). In 2006, Hezbollah and Israel fought a 34-day war
on the implementation of reforms. These could include
that killed over 1,200 people, mostly Lebanese.
passing a capital controls law and overhauling the state-run
Hezbollah has participated in Lebanese elections since
electricity sector.
1992. The group entered the cabinet for the first time in
U.S. Policy
2005, and has held 1 to 3 seats in each of the eight
U.S. policy in Lebanon aims to counter the influence of
Lebanese governments formed since then. Hezbollah holds
Iran, Syria, and Hezbollah, secure Lebanon’s border against
two seats in Lebanon’s current cabinet.
the flow of weapons and militant groups, and preserve
domestic stability. In pursuit of these goals, the United
U.N. Interim Force in Lebanon (UNIFIL)
States has sought to strengthen the LAF, generating debate
In 1978, UNIFIL deployed to the Lebanon-Israel-Syria tri-
within Congress between those who view the LAF as key to
border area to confirm the withdrawal of Israeli forces from
countering Hezbollah and those who argue that U.S.
southern Lebanon and assist the Lebanese government in
assistance to the LAF risks falling into the hands of U.S.
expanding its authority there. Following the 2006 Israel-
adversaries. The United States has also used targeted
Hezbollah war, UNIFIL’s mandate was expanded via
economic sanctions to isolate and degrade Hezbollah.
UNSCR 1701 to include assisting the Lebanese government
in establishing “an area free of any armed personnel, assets
U.S. Aid to Lebanon
and weapons other than those of the Government of
The United States is the largest provider of development,
Lebanon and UNIFIL” between the Blue Line [a 120 km
humanitarian, and security assistance to Lebanon. Congress
line between the two states used to confirm the Israeli
places several certification requirements on U.S. assistance
withdrawal] and the Litani River. UNIFIL describes this
funds for Lebanon annually in an effort to prevent their
zone as its area of operations. UNSCR 1701 calls upon
misuse or the transfer of U.S. equipment to Hezbollah. The
Lebanon to secure its borders and requests that UNIFIL
United States has provided more than $2 billion worth of
“assist the government of Lebanon at its request.”
assistance and materiel to the LAF since 2006. The United
States has provided $18 million in emergency humanitarian
2020 Developments
assistance to Lebanon since the August 4 blast. U.S.
Border skirmishes in July and August between Hezbollah
officials have emphasized that aid is routed through
and the Israeli military raised tensions shortly before the
international and nongovernmental organizations.
UNIFIL mandate’s renewal (August 31). Prime Minister
Diab has accused Israel of escalating tensions to bolster a
Table 1. U.S. Bilateral Aid to Lebanon
U.S.-Israeli argument for modifying UNIFIL’s mandate to
al ocations by year of appropriation, current U.S. $ in mil ions
allow for the search of private property in southern
FY17
FY18
FY19
FY20
FY21
Lebanon. The United States and Israel have accused
actual actual actual enacted request
Hezbollah of hiding weapons in violation of UNSCR 1701.

ESF/ESDF
110.00 117.00
112.50
112.50
62.20
Economic Crisis
Lebanon in 2020 faces overlapping currency, debt, fiscal,
FMF
80.00 105.00
105.00
105.00
50.00
and banking crises. The Lebanese pound, pegged to the
IMET
2.65
3.12
2.97
2.97
3.00
dollar, has lost roughly 80% of its value in black-market
trading since October 2019. Inflation is estimated to be
INCLE
10.00
10.00
10.00
10.00
6.20
52.6%, crossing the threshold into hyperinflation. In March
NADR
5.76
10.82
11.82
11.82
11.76
2020, Lebanon defaulted on its foreign debt for the first
time in its history; the country’s public debt (estimated at
Total
208.41 245.94
242.29
242.29
133.16
over 170% of GDP) is among the highest in the world. In
Source: Department of State, Foreign Operations and Related
June, the Economist Intelligence Unit forecast that the
Programs Congressional Budget Justifications (FY2017-FY2021), P.L.
economy will contract by 12% in 2020, while the budget
116-94, and CRS calculations and rounding.
deficit widens to 14% of GDP.
Lebanon’s economic crisis has had a severe impact on the
U.S. Sanctions
country’s population. Food prices and unemployment have
Lebanon depends heavily on imports, three-quarters of
soared; residents experience daily power cuts for up to 12
which come through the port of Beirut. In July, Lebanon
hours a day outside Beirut. In April 2020, the government
reportedly sought exemptions from the Caesar Syria
estimated that about 48% of the population was living in
Civilian Protection Act in order to import electricity and
poverty and predicted that poverty levels could hit 60% by
agricultural products from Syria, as well as to transport
the end of 2020. Hospitals have struggled to pay staff and
goods through Syria to reach regional markets. U.S.
secure imports of medical supplies; doctors warn that
officials have said that “the Assad regime is not the answer
Lebanon (with slightly over 13,000 confirmed COVID-19
to Lebanon’s electricity difficulties,” but have stated that
cases in late August) is unprepared for a broader outbreak.
requests for exemptions would be reviewed.
In May 2020, the Lebanese government formally requested
CRS Research Assistant Sarah Collins contributed to this In
a $10 billion loan from the International Monetary Fund
Focus.
(IMF). However, talks between the government and the
IMF have stalled, in part due to questions about the central
Carla E. Humud, Analyst in Middle Eastern Affairs
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Lebanon

IF11617


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