Updated October 2, 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 1 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 Hariri
port. According to the government, the initial cause of the
cabinet was majority March 8, reflecting the results of the
explosion was a welding accident at the port, but many
2018 legislative elections, but parties expected to align with
Lebanese blamed the blast on government negligence and
March 14 held 11 seats. In October 2019, Hariri resigned
mismanagement. Reports have highlighted pervasive
amid mass protests, triggering the collapse of the
corruption and smuggling at the port, reportedly linked to
government.
all of Lebanon’s major political parties. Authorities named
2020 Diab Government Resignation
a military judge to lead the investigation into the cause of
In January 2020, Lebanon formed a new government under
the blast; some Lebanese have questioned his independence
Prime Minister Hassan Diab. The Diab cabinet was the first
from political elites. An FBI team was dispatched to
since 2005 composed of parties from a single political bloc
Lebanon in August to assist with the investigation.
(March 8). On August 10, Diab resigned in the wake of the
August 4 explosion at the port of Beirut.
Hezbollah
New Prime Minister Resigns After Cabinet Blocked
Hezbollah, a U.S.-designated Foreign Terrorist
Organization (FTO), operates in Lebanon as a militia force,
On August 28, President Aoun appointed Mustapha Adib,
a political party, and a provider of social services. It is
as prime minister-designate. On September 26, Adib
closely linked to Iran, which provides it with significant
resigned after failing to form a new government. Among
funding and has used it as a proxy or allied force to threaten
the primary obstacles was the insistence by Hezbollah and
Israel. While Israel withdrew in 2000 from areas of
Amal that they be permitted to name all Shi’a ministers in
southern Lebanon it had occupied since 1982, Hezbollah
the new government, and that the Finance Ministry remain
in Shi’a control. Lebanon’s
has used the remaining Israeli presence in disputed areas in
four “sovereign ministries”
the Lebanon-Syria-Israel triborder region to justify its
(Defense, Interior, Foreign Affairs, and Finance) are not
ongoing conflict with Israel and its continued existence as
formally allotted to a specific sect, but customarily have
been divided among Lebanon’s largest sectarian
an armed militia alongside the Lebanese Armed Forces
groups:
Maronite Christian, Sunni, Shi’a, and Orthodox Christian.
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Lebanon
(LAF). In 2006, Hezbollah and Israel fought a 34-day war
noted that “Lebanese nationals are now joining Syrian
that killed over 1,200 people, mostly Lebanese.
refugees on boats to flee Lebanon and seek asylum.”
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 $19 million in emergency humanitarian
COVID-19
assistance to Lebanon since the August 4 blast. These funds
Local transmission of Coronavirus Disease 2019 (COVID-
are separate from $41.6 million in supplemental USAID
19) has accelerated in Lebanon, with cases more than
and State Department funding for Lebanon’s COVID-19
doubling in September. Between August and mid-
response. U.S. officials have emphasized that aid is routed
September, the number of people hospitalized and in
through international and nongovernmental organizations.
intensive care for COVID-19 had risen by 193% and 275%,
Table 1. U.S. Bilateral Aid to Lebanon
respectively, according to Health Ministry data. Hospitals
have struggled to pay staff and secure imports of medical
al ocations by year of appropriation, current U.S. $ in mil ions
supplies, and face a shortage of medical personnel.
FY17
FY18
FY19
FY20
FY21
Economic Crisis
actual actual actual enacted request

Lebanon in 2020 faces overlapping currency, debt, fiscal,
ESF/ESDF
110.00 117.00
112.50
112.50
62.20
and banking crises. The Lebanese pound, pegged to the
dollar, has lost roughly 80% of its value in black-market
FMF
80.00 105.00
105.00
105.00
50.00
trading since October 2019. The Economist Intelligence
IMET
2.65
3.12
2.97
2.97
3.00
Unit (EIU) estimates that inflation is over 50%, crossing the
threshold into hyperinflation. In March 2020, Lebanon
INCLE
10.00
10.00
10.00
10.00
6.20
defaulted on its foreign debt for the first time in its history;
NADR
5.76
10.82
11.82
11.82
11.76
the country’s public debt (estimated at 155% of GDP) is
among the highest in the world. In June, the EIU forecast
Total
208.41 245.94
242.29
242.29
133.16
that the economy will contract by 12% in 2020, while the
Source: State Department Budget Justifications (FY2017-FY2021),
budget deficit widens to 14% of GDP.
P.L. 116-94, and CRS calculations and rounding.
In May 2020, the Lebanese government formally requested
U.S. Sanctions
a $10 billion loan from the International Monetary Fund
(IMF). However, talks between the government and the
Lebanon depends heavily on imports, three-quarters of
IMF have stalled over questions regarding the exchange
which come through the port of Beirut. In July, Lebanon
rate, government finances, and banking reforms. U.S. and
reportedly sought exemptions from the Caesar Syria
European officials have conditioned their support for an
Civilian Protection Act in order to import electricity and
IMF program for Lebanon on the implementation of
agricultural products from Syria, as well as to transport
structural reforms.
goods through Syria to reach regional markets. U.S.
officials have said that “the Assad regime is not the answer
Lebanon’s economic crisis has had a severe impact on the
to Lebanon’s electricity difficulties,” but have stated that
country’s population. Extreme poverty has tripled in the
requests for exemptions would be reviewed. In September,
past 12 months, from 8% to 23% of the population.
the United States designated additional Lebanese officials
Unemployment has risen to 30%. In April 2020, the
and entities for support to Hezbollah. Some observers noted
government estimated that poverty levels could hit 60% by
that the sanctions coincided with increased Hezbollah and
the end of 2020; the United Nations has cautioned that more
Amal intransigence on government formation.
than half of the population could face food shortages by the
end of 2020. In September, Human Rights Watch officials
CRS Research Assistant Sarah Collins contributed to this In
Focus.
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Lebanon

IF11617
Carla E. Humud, Analyst in Middle Eastern Affairs


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https://crsreports.congress.gov | IF11617 · VERSION 5 · UPDATED

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