Updated November 8, 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
in the aftermath of an August 2020 explosion that severely
damaged the port of Beirut and surrounding 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. Authorities named a military judge to lead the
2021 Mikati Government
investigation into the cause of the blast; in February 2021
he was replaced after two former ministers charged in the
In September 2021, Prime Minister Najib Mikati and
case requested that the case be transferred to another judge.
President Michel Aoun agreed on the formation of a new
Judge Tarek Bitar currently leads the investigation. Several
government, following 13 months of political gridlock.
Lebanese officials have refused to appear for questioning,
Like the outgoing Diab government, the Mikati government
claiming immunity. Two efforts by officials charged in the
is dominated by the March 8 coalition of Hezbollah and its
blast to remove Bitar from the investigation have failed.
political allies. The new cabinet is to govern until the next
parliamentary elections, scheduled for early 2022.
Blast Investigation Triggers Sectarian Violence
Changes to 2022 Elections
On October 14, 2021, unknown assailants fired on
In October 2021, Lebanon’s parliament passed amendments
Hezbollah and Amal supporters who had gathered to protest
to the country’s electoral law that would
what they described as Bitar’s politicization of the Beirut
move up
Lebanon’s 2022 parliamentary elections to March from
port blast investigation. The clashes triggered a firefight
May and allow Lebanese abroad to vote in their home
that killed 7 and injured more than 30. Hezbollah and A mal
districts (rather than voting for six new MPs to represent the
accused the Lebanese Forces of instigating the violence; the
diaspora). The vote came after Parliament’s initial
Lebanese Forces have stated that Christian residents of the
legislation approving the measures was returned to the
area acted in self-defense. The events have been described
legislature by President Aoun, whose party (the Free
as the worst sectarian clashes in Lebanon since 2008.
Patriotic Movement) opposes the measures. Expatriates,
Hezbollah
many of whom are expected to support opposition parties,
could have a significant impact on local elections in their
Hezbollah, subject to U.S. sanctions for its activities in
home districts. Following Parliament’s second vote, Aoun
Syria and designated as a Foreign Terrorist Organization
stated that the amendments to the electoral law are now in
(FTO) and Specially Designated Global Terrorist (SDGT),
effect, despite his refusal to sign them.
operates in Lebanon as a militia force, a political party, and
a provider of social services. It is linked to Iran, which
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Lebanon
provides it with funding and has used it as a proxy or allied
Lebanon-Gulf Rift
force to threaten Israel. While Israel withdrew in 2000 from
In October 2021, Saudi Arabia recalled its ambassador to
areas of southern Lebanon it had occupied since 1982,
Lebanon, banned all Lebanese imports, and expelled
Hezbollah has used the remaining Israeli presence in
Lebanon’s ambassador to the kingdom. The moves came in
disputed areas in the Lebanon-Syria-Israel triborder region
response to comments made by Lebanese Information
to justify its ongoing conflict with Israel and its continued
Minister George Kordahi criticizing the Saudi-led military
existence as a militia alongside the Lebanese Armed Forces
intervention in Yemen. The United Arab Emirates (UAE),
(LAF). In 2006, Hezbollah and Israel fought a 34-day war
Kuwait, and Bahrain also recalled their envoys.
in which over 1,200 people, mostly Lebanese, were killed.
U.S. Policy
Hezbollah has participated in Lebanese elections since
U.S. policy in Lebanon aims to counter the influence of
1992. The group first entered the cabinet in 2005, and has
Iran, Syria, and Hezbollah, secure Lebanon’s border against
held 1 to 3 seats in each subsequent Lebanese government.
the flow of weapons and militant groups, and preserve
Hezbollah has two seats in the Mikati cabinet, spanning
domestic stability. To this end, the United States has sought
three portfolios (Public Works, Transport, and Labor).
to strengthen the LAF, generating debate in Congress
U.N. Interim Force in Lebanon (UNIFIL)
between those who view the LAF as key to countering
Hezbollah and those who argue that U.S. assistance to the
In 1978, UNIFIL deployed to the Lebanon-Israel-Syria tri-
LAF risks falling into the hands of U.S. adversaries.
border area to confirm the withdrawal of Israeli forces from
U.S. Aid to Lebanon
southern Lebanon and assist the Lebanese government in
expanding its authority there. Following the 2006 Israel-
The United States is the largest provider of development,
Hezbollah war, UNSCR 1701 expanded UNIFIL’s mandate
humanitarian, and security assistance to Lebanon. Congress
to include assisting the Lebanese government in
places several certification requirements on U.S. assistance
establishing “an area free of any armed personnel, assets
funds for Lebanon annually in an effort to prevent their
and weapons other than those of the Government of
misuse or the transfer of U.S. equipment to Hezbollah. In
Lebanon and UNIFIL” between the Blue Line [a 120 km
FY2021, the United States provided more than $400 million
line between the two states used to confirm the Israeli
in humanitarian assistance for Lebanon, and more than
withdrawal] and the Litani River. UNIFIL describes this
$200 million in security assistance.
zone as its area of operations. UNSCR 1701 calls upon
Table 1. U.S. Bilateral Aid to Lebanon
Lebanon to secure its borders and requests that UNIFIL
allocations by year of appropriation, current U.S. $ in millions
“assist the government of Lebanon at its request.”
FY18
FY19
FY20
FY21
FY22
Economic Crisis
actual
actual
actual
enacted request

According to a 2021 World Bank report, Lebanon faces an
DA
-
-
7.55
-
-
economic crisis “likely to rank in the top 10, possibly top 3,
most severe crises episodes globally since the mid-
ESF
117.00
112.50
78.95
112.5
112.50
nineteenth century.” The depreciation of the lira resulted in
FMF
105.00
105.00
105.00 105.00
160.00
massive inflation, devalued salaries by roughly 90 percent,
and forced the government to reduce or eliminate subsidies
IMET
3.12
2.97
2.68
2.97
3.50
on essential goods. A lack of foreign exchange to finance
imports has triggered shortages of medicine, water, and
INCLE
10.00
10.00
10.00
10.00
8.20
fuel. Due in part to fuel shortages, Lebanon’s energy sector
NADR
10.82
11.82
11.82
11.82
11.76
generates less than four hours of electricity daily. The
Mikati government has resumed negotiations with the
Total
245.94 242.29
216.00 242.29 295.96
International Monetary Fund (IMF) over an economic
Source: State Department Budget Justifications (FY2017-FY2022),
rescue package. The IMF reportedly has required an audit
P.L. 116-260, and CRS calculations and rounding.
of Lebanon’s central bank, which remains incomplete.
In September 2021, the Biden Administration authorized
Competing Gas Deals
the State Department to direct the drawdown of up to $22
million in defense articles and services and up to $25
In late 2021, the governments of Egypt, Jordan, and Syria
million in commodities and services from any federal
agreed to transfer natural gas and electricity to Lebanon in
agency for aid to the LAF.
order to alleviate widespread power outages. Egyptian
natural gas is to transit Jordan and Syria to reach the Deir
New U.S. Sanctions Announced
Ammar power plant in Lebanon, a transfer expected to
In October 2021, the U.S. Department of the Treasury
generate an additional four hours of electricity per day. The
imposed sanctions on two Lebanese businesspersons and
gas is to be distributed first to Syria, which is to send a
one Member of Parliament, pursuant to Executive Order
smaller quantity of gas into Lebanon via the Arab Gas
13441, for contributing to the breakdown of good
Pipeline—a difference equivalent to an in-kind payment.
governance and rule of law in Lebanon.
The agreement reportedly aims to avoid a direct payment of
transit fees to Syria in violation of U.S. sanctions. As part
CRS Research Assistant Sarah Collins contributed to this In
of the agreement, Jordan is to transfer excess electricity via
Focus.
Syria to a Lebanese substation, generating an additional two
hours of electricity per day. Separately, Hezbollah since
Carla E. Humud, Analyst in Middle Eastern Affairs
August 2021 has coordinated truck shipments of Iranian
fuel oil and gasoline into Lebanon via Syria.
IF11617
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Lebanon


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https://crsreports.congress.gov | IF11617 · VERSION 9 · UPDATED

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