Updated September 1, 2020
Lebanon
Lebanon, a country of 5.5 million people, faces the worst
Figure 1. Lebanon
economic crisis in its history amid ongoing political unrest,
the spread of COVID-19, and an August 2020 explosion
that severely damaged the port of Beirut and surrounding
densely populated 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
Source: Created by CRS using ESRI, Google Maps, and Good
bloc, which advocates friendly ties with Iran and Syria, a
Shepherd Engineering and Computing.
simple majority (68 out of 128 seats). The United States has
maintained ties with March 8’s political rival, known as the
Beirut Port Explosion and Investigation
March 14 bloc, which includes the Future Movement
On August 4, 2020, a massive explosion at the port of
(Sunni), the Lebanese Forces, and Kataeb (both Christian).
Beirut killed over 190 people, and injured and displaced
2019 Government Collapse
thousands. Lebanese officials linked the explosion to 2,750
tons of ammonium nitrate that had been confiscated from a
Former Prime Minister and Future Movement leader Saad
disabled cargo ship in 2014 and stored in a warehouse at the
Hariri formed a government in January 2019. The 30-
port. According to the government, the initial cause of the
member Hariri cabinet was majority March 8, reflecting the
explosion was a welding accident at the port, but many
results of the 2018 legislative elections, but parties expected
Lebanese blamed the blast on government negligence and
to align with March 14 held 11 seats. In October 2019,
mismanagement. Many political parties reportedly had ties
Hariri resigned amid mass protests against state corruption,
to different port officials, which may have given them
ineptitude, and economic mismanagement, triggering the
insight into port operations and smuggling. Authorities
collapse of the government.
named a military judge to lead the investigation into the
2020 Diab Government Resignation
cause of the blast; some Lebanese have questioned his
In January 2020, Lebanon formed a new government under
independence from political elites. To date, charges have
Prime Minister Hassan Diab. The 20-member Diab cabinet
been filed against 25 people, none of whom is a minister or
was the first since 2005 composed of parties from a single
political official. An FBI team was dispatched to Lebanon
political bloc (March 8). On August 10, Diab resigned in
in mid August to assist with the investigation.
the wake of the August 4 explosion at the port of Beirut.
Hezbollah
New Prime Minister-Designate Appointed
Hezbollah, a U.S.-designated Foreign Terrorist
On August 28, President Aoun appointed Lebanon’s
Organization (FTO), operates in Lebanon as a militia force,
Ambassador to Germany, Mustapha Adib, as prime
a political party, and a provider of social services. It is
minister-designate. Adib, a Sunni Muslim from Tripoli,
closely linked to Iran, which provides it with significant
previously served as a senior advisor to former prime
funding and has used it as a proxy or allied force to threaten
minister Najib Mikati (a billionaire with close ties to Syrian
Israel. While Israel withdrew in 2000 from areas of
President Bashar al Asad). Hezbollah and its allies
southern Lebanon it had occupied since 1982, Hezbollah
reportedly rejected two other candidates for the post. Adib
has used the remaining Israeli presence in disputed areas in
is expected to consult with parliamentary blocs to form a
the Lebanon-Syria-Israel triborder region to justify its
new government, taking into account sectarian quotas.
ongoing conflict with Israel and its continued existence as
https://crsreports.congress.gov

---

Lebanon
an armed militia alongside the Lebanese Armed Forces
bank’s financial position. U.S. and European officials have
(LAF). In 2006, Hezbollah and Israel fought a 34-day war
conditioned their support for an IMF program for Lebanon
that killed over 1,200 people, mostly Lebanese.
on the implementation of reforms.
Hezbollah has participated in Lebanese elections since
U.S. Policy
1992. The group entered the cabinet for the first time in
2005, and has held 1 to 3 seats in each Lebanese
U.S. policy in Lebanon aims to counter the influence of
government formed since then. Hezbollah held two
Iran, Syria, and Hezbollah, secure Lebanon’s border against
ministerial seats (Health and Industry) in the Diab 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. These funds
Border skirmishes in July and August between Hezbollah
are separate from $41.6 million in supplemental USAID
and the Israeli military raised tensions shortly before the
and State Department funding for Lebanon’s COVID-19
UNIFIL mandate’s annual renewal. Prime Minister Diab
response. U.S. officials have emphasized that aid is routed
has accused Israel of escalating tensions to bolster a U.S.-
through international and nongovernmental organizations.
Israeli argument for modifying UNIFIL’s mandate to allow
for the search of private property in southern Lebanon. The
Table 1. U.S. Bilateral Aid to Lebanon
United States and Israel have accused Hezbollah of hiding
al ocations by year of appropriation, current U.S. $ in mil ions
weapons in violation of UNSCR 1701. In late August, the
FY17
FY18
FY19
FY20
FY21
U.N. Security Council renewed UNIFIL’s mandate, slightly
actual actual actual enacted request
reducing the force’s size in response to U.S. pressure.

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
U.S. Sanctions
has had a severe impact on the
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
to Lebanon’s electricity difficulties,”
Lebanon (with slightly over 16,000 confirmed COVID-19
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
Carla E. Humud, Analyst in Middle Eastern Affairs
IMF have stalled, in part due to questions about the central
https://crsreports.congress.gov

---

Lebanon

IF11617


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11617 · VERSION 4 · UPDATED

---