Why It Matters

A recent Congressional Research Service report examines U.S. policy toward Lebanon as the country faces renewed conflict between Israel and Hezbollah, an Israeli military presence in southern Lebanon, and an economic crisis that has persisted since 2019. Renewed fighting has displaced more than 1 million people in Lebanon and killed more than 4,300, while Israel has established a buffer zone encompassing roughly 5% of Lebanese territory.

The Trump administration faces pressure to manage Israel's military presence while maintaining diplomatic channels with Lebanon and Iran, both of which have made the country central to their strategic calculations. CRS notes that Lebanon's outlook remains tied in part to U.S.-Iran relations and that Iran has sought to include Lebanon in diplomatic arrangements with the United States.

The Big Picture

Fighting between Israel and Hezbollah resumed in March after U.S.-Israeli military operations against Iran began on Feb. 28. Hezbollah restarted firing into Israel in response, and Israeli ground operations expanded significantly. Israel's military established a buffer zone in southern Lebanon encompassing around 5% of the country's territory.

A June U.S.-Israel-Lebanon trilateral framework committed Israel to “progressively redeploy out of” Lebanon pending the verified disarmament of nonstate armed groups, starting in designated pilot zones. Hezbollah has refused to disarm as demanded by both the Lebanese government and the United States.

The conflict has compounded an existing economic catastrophe. Since 2019, Lebanon has undergone what CRS describes as the worst economic crisis in its history. Lebanon defaulted on its foreign debt, and a lack of foreign exchange to finance imports triggered shortages of medicine, water, and fuel. The World Bank estimated $6.8 billion in physical damage and $7.2 billion in economic losses from the Hezbollah-Israel conflict, while Lebanon recorded modest economic growth of 3.5% in 2025.

The United States has invested heavily in Lebanon's stability through military and humanitarian assistance. Since 2006, it has provided $3 billion in Foreign Military Financing to the Lebanese Armed Forces (LAF). Humanitarian assistance has exceeded $3.5 billion since fiscal year 2019. Congress has annually imposed certification requirements on aid to Lebanon to prevent misuse, reflecting longstanding debate over the effectiveness and risks of U.S. support. The 2025 suspension of most U.S. foreign assistance globally and termination of some programs reportedly affected some U.S.-funded activities in Lebanon.

Sanctions policy adds another layer of complexity. Lebanon is not subject to state- or government-level U.S. sanctions, but the United States has designated more than 300 individuals and entities in Lebanon, most for ties to Hezbollah. The United States has also occasionally sanctioned Lebanese politicians and officials for corruption or human rights violations.

The Bottom Line

The June U.S.-Israel-Lebanon trilateral framework offers a potential path toward Israeli withdrawal and expanded Lebanese government control, but significant obstacles remain. President Trump said in July that “it would be good” for Israeli forces to withdraw from parts of Lebanon, while Lebanese President Joseph Aoun said the Israeli military presence in southern Lebanon “undermines the legitimacy of the state and prevents the deployment of the army.” Iran has sought to include Lebanon in its diplomatic arrangements with the United States, a strategy Aoun has rejected as treating Lebanon as a “bargaining chip.”

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