Updated August 10, 2021
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 Coronavirus Disease 2019 (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 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.
Lebanon’s leaders have warned that the country’s economic
crisis could lead to a collapse of state institutions.
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 Free Patriotic Movement (Christian),

which along with Hezbollah and the Amal Movement (both
Source: Created by CRS using ESRI and Google Maps.
Shi’a) comprise the major components of the March 8
Beirut Port Explosion and Investigation
political bloc. Parliamentary elections in 2018 gave the
On August 4, 2020, a massive explosion at the port of
bloc, which advocates close ties with Iran and Syria, a
Beirut killed over 190 people and injured and displaced
simple majority (68 out of 128 seats). The United States has
thousands. Lebanese officials linked the explosion to 2,750
maintained ties with March 8’s political rival, known as the
tons of ammonium nitrate that had been confiscated from a
March 14 bloc, which includes the Future Movement
disabled cargo ship in 2014 and stored in a warehouse at the
(Sunni), the Lebanese Forces, and Kataeb (both Christian).
port. An FBI investigation reportedly estimated that the
Political Instability
explosion was caused by roughly 552 tons of ammonium
In October 2019, a nationwide protest movement prompted
nitrate; adding to concerns that some of the cargo—used in
the resignation of then-Prime Minister Saad Hariri. A
fertilizers and explosives—may have gone missing prior to
subsequent government led by Hassan Diab resigned after
the explosion. Many Lebanese blamed the blast on
eight months, following the Beirut port explosion. Prime
government negligence and mismanagement. Reports have
Minister-designate Mustapha Adib resigned a month after
highlighted pervasive corruption and smuggling at the port,
his appointment. In October 2020, President Aoun re-
reportedly linked to all of Lebanon’s major political parties.
nominated Saad Hariri as prime minister designate. Hariri
Authorities named a military judge to lead the investigation
resigned in July 2021, after he and Aoun were unable to
into the cause of the blast; in February 2021 he was
agree on the composition of a new cabinet.
replaced after two former ministers charged in the case
requested that the case be transferred to another judge. New
Mikati Named New Prime Minister-Designate
investigative judge Tarek Bitar has not been able to
In July 2021, Aoun appointed Najib Mikati as prime
question senior Lebanese officials, who retain immunity.
minister-designate. Talks between Mikati and Aoun over
cabinet formation have focused on the allocation of
Hezbollah
“sovereign ministries” (Defense, Foreign Affairs, Interior,
Hezbollah, a U.S.-designated Foreign Terrorist
and Finance), which are divided among Lebanon’s largest
Organization (FTO), operates in Lebanon as a militia force,
sectarian groups. Aoun reportedly has called for a Christian
a political party, and a provider of social services. It is
to be appointed Interior Minister, a portfolio currently held
closely linked to Iran, which provides it with significant
by a Sunni and whose mandate includes the administration
funding and has used it as a proxy or allied force to threaten
of elections (scheduled for 2022). Mikati reportedly has
Israel. While Israel withdrew in 2000 from areas of
indicated that, because Shi’a parties have retained the
southern Lebanon it had occupied since 1982, Hezbollah
Finance Ministry as a condition of government formation,
has used the remaining Israeli presence in disputed areas in
the sovereign ministries will not be rotated. Foreign Affairs
the Lebanon-Syria-Israel triborder region to justify its
and Defense currently are held by a Christian.
ongoing conflict with Israel and its continued existence as
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Lebanon
an armed militia alongside the Lebanese Armed Forces
leave some areas of the country with only 2-3 hours of daily
(LAF). In 2006, Hezbollah and Israel fought a 34-day war
electricity, and are thus reliant on diesel-run generators. In
that killed over 1,200 people, mostly Lebanese.
July, Lebanon’s private hospitals syndicate warned of an
“inevitable health disaster,”
Hezbollah has participated in Lebanese elections since
due to a diesel shortage.
1992. The group entered the cabinet for the first time in
U.S. Policy
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
U.N. Interim Force in Lebanon (UNIFIL)
domestic stability. In pursuit of these goals, the United
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, UNSCR 1701 expanded UNIFIL’s mandate
economic sanctions to isolate and degrade Hezbollah.
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. U.S.
Lebanon to secure its borders and requests that UNIFIL
humanitarian funding, totaling $558.3 million in FY2020–
“assist the government of Lebanon at its request.”
2021, aims to address both the refugee crisis in Lebanon
Economic Crisis
and the effects of the August 2020 explosion at the port of
Beirut. This includes $54 million in supplemental funding
According to a May 2021 World Bank report, Lebanon's
for COVID-19 preparedness and response activities.
ongoing economic collapse, a result of overlapping
governance, currency, debt, fiscal, and banking crises, “is
Table 1. U.S. Bilateral Aid to Lebanon
likely to rank in the top 10, possibly top 3, most severe
al ocations by year of appropriation, current U.S. $ in mil ions
crises episodes globally since the mid-nineteenth century.”
The World Bank estimates that the lira’s average valuation
FY18
FY19
FY20
FY21
FY22
fell by 129% in 2020, and fell further in 2021.
actual actual
actual
enacted request

In May 2020, the Lebanese government formally requested
DA
-
-
7.55
-
-
a $10 billion loan from the IMF. However, talks between
ESF
117.00
112.50
78.95
112.5
112.50
the government and the IMF stalled over questions
regarding the exchange rate, government finances, and
FMF
105.00
105.00
105.00
105.00
160.00
banking reforms. U.S. and European officials have
conditioned their support for an IMF program for Lebanon
IMET
3.12
2.97
2.68
2.97
3.50
on the implementation of structural reforms. These reforms
INCLE
10.00
10.00
10.00
10.00
8.20
require the formation of a new government, as the Diab
government has only limited authorities. (Diab and his
NADR
10.82
11.82
11.82
11.82
11.76
cabinet remain in caretaker status, as neither Adib nor
Total
245.94 242.29
216.00 242.29 295.96
Hariri were able to form a government).
Social Impacts
Source: State Department Budget Justifications (FY2017-FY2022),
P.L. 116-260, and CRS calculations and rounding.
The depreciation of the lira has triggered massive inflation
and forced the government to reduce or eliminate subsidies
Outlook
on essential goods. Widespread blackouts and shortages,
Deteriorating economic conditions could trigger a
together with subsidy reductions, have triggered protests
humanitarian crisis, potentially generating large refugee
and growing tensions among residents struggling to obtain
outflows—both of the existing Syrian refugee population
increasingly scarce resources. Inflation and the lira’s steep
and of Lebanese citizens. Sectarian conflict could emerge if
depreciation also have devalued salaries, including those of
the state can no longer provide services, and citizens turn to
military personnel. In June 2021, LAF Commander Joseph
sectarian leaders for resources or security—as they did
Aoun stated that, “The situation is critical. If unmitigated,
during Lebanon’s 1975-1990 civil war. State breakdown
the economic and financial crisis will inevitably lead to the
collapse of all state institutions including the LAF.”
would likely strengthen the influence of U.S. adversaries in

COVID-19
Lebanon, including Iran, Syria, and Hezbollah.
COVID-19 cases continue to surge in Lebanon; roughly
CRS Research Assistant Sarah Collins contributed to this In
26% of the country’s population was partially vaccinated as
Focus.
of early August. Hospital officials in July warned that the
primary challenge for Lebanese hospitals is the lack of
Carla E. Humud, Analyst in Middle Eastern Affairs
electricity, without which key equipment cannot be
operated. Hospitals are impacted by recurring blackouts that
IF11617
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Lebanon


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