Key Takeaways
- •Rep. Lawler (Republican) and Rep. Sherman (Democratic) highlighted a historic, yet fleeting, opportunity for Lebanon to disarm Hezbollah and implement reforms following recent regional shifts.
- •Witness Ghaddar stated Hezbollah's survival relies on an economic and political ecosystem, particularly the unregulated cash economy, which enables rearmament despite military losses.
- •Rep. Issa (Republican) pressed Witness Schenker on sanctioning Speaker Nabih Berri for obstructing electoral reform and disenfranchising diaspora voters, which Schenker supported.
- •Both Republican and Democratic members, including Rep. Lawler and Rep. Sherman, expressed bipartisan agreement on the urgent need to disarm Hezbollah and support Lebanese reforms.
- •Witnesses urged conditioning U.S. aid to the Lebanese Armed Forces and escalating sanctions on corrupt officials to ensure progress on disarmament and reforms before upcoming elections.
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Hearing Analysis
Overview
The House Subcommittee on the Middle East and North Africa met on February 3, 2026, to evaluate U.S. policy toward Lebanon following the November 2024 ceasefire between Israel and Hezbollah. Chaired by Rep. Michael Lawler (R-NY-17), the hearing focused on the "unprecedented opportunity" to dismantle Hezbollah’s influence, strengthen the Lebanese Armed Forces (LAF), and implement structural economic reforms. Chairman Lawler opened the session by stating that while Hezbollah has been significantly degraded by Israeli military action, the group remains a threat as it attempts to reconstitute its power base through Lebanon’s unregulated cash economy and corrupt political institutions. Ranking Member Brad Sherman (D-CA-32) echoed the sentiment that a "generational opportunity" exists to disarm Hezbollah but expressed concern over the Trump administration’s cuts to non-security foreign assistance and comments by Special Envoy Tom Barrack, which Sherman argued downplayed Hezbollah’s nature as a terrorist organization.
Key Testimony
The witness panel consisted of three experts from the Washington Institute for Near East Policy: the Honorable David Schenker, Ms. Hanin Ghaddar, and Ms. Dana Stroul. The witnesses collectively argued that while the 2024 ceasefire is holding, the process of disarming Hezbollah is moving too slowly. David Schenker testified that the LAF possesses the physical capability to disarm Hezbollah but lacks the political will, often deferring to the group when faced with obstruction. He noted a "division of labor" where Israel continues to target Hezbollah assets that the LAF is unwilling to confront. Schenker recommended that the U.S. condition all future security assistance on LAF performance and benchmarks, while also "cleansing" Lebanese security institutions of Hezbollah collaborators.
Ms. Hanin Ghaddar shifted the focus to the "economic ecosystem" that sustains Hezbollah. She testified that the collapse of Lebanon’s formal banking sector has given rise to an $18 billion unregulated cash economy. Hezbollah and Iran exploit this system through money service businesses and exchange houses to move funds outside of international oversight. Ghaddar argued that even if Hezbollah were stripped of its weapons, it would rebuild using this financial infrastructure. She proposed aggressive Treasury Department sanctions against these cash businesses and the Lebanese judiciary, which she described as providing "immunity" for Hezbollah’s illicit activities. Furthermore, she highlighted the 2026 parliamentary elections as a critical juncture, warning that Hezbollah might use violence to suppress dissent and maintain its grip on the 27 Shia seats in parliament.
Ms. Dana Stroul emphasized the regional shifts that have weakened both Hezbollah and the Iranian regime. She urged the U.S. to broaden its engagement beyond the security file to include reconstruction and diplomatic support for Lebanon’s current leadership, specifically President Joseph Aoun and Prime Minister Najib Mikati. Stroul warned that if the U.S. does not offer a tangible reconstruction package with clear conditions, it risks ceding influence to external actors like Qatar and Turkey, who may provide assistance without demanding the removal of Hezbollah-affiliated officials from government ministries.
Overview
Policy proposals discussed during the hearing were extensive. Rep. Darrell Issa (R-CA-48) highlighted his newly introduced legislation, H.R. 7311, the SAFE Lebanon Act, which would authorize sanctions against Lebanese officials who obstruct constitutional processes or engage in corruption. A recurring theme was the need to sanction Speaker of Parliament Nabih Berri, whom witnesses and members accused of blocking electoral reforms and disenfranchising the Lebanese diaspora. Witnesses also called for the abolition of military courts used to silence political dissidents and the demarcation of the Lebanon-Syria border to prevent smuggling.
Organizations & Entities
Partisan dynamics were largely characterized by a shared desire to see Hezbollah disarmed, though Democrats and Republicans differed on the methods of engagement. Rep. Sherman and other Democrats criticized the administration’s "dismantling" of the U.S. Agency for International Development (USAID) and the lack of technical diplomatic experts on the ground. Conversely, Republican members like Rep. Michael Baumgartner (R-WA-5) expressed skepticism about providing any additional taxpayer dollars to a country rife with systemic corruption, demanding that the Lebanese diaspora and government "get serious" about reform before receiving further aid.
Industry Impact
Notable exchanges occurred regarding the potential for Lebanon to join the Abraham Accords. Chairman Lawler and Ms. Ghaddar discussed the necessity of repealing Lebanon’s anti-normalization laws to allow for people-to-people contact and economic cooperation with Israel. Additionally, Rep. Ryan Zinke (R-MT-1) questioned the witnesses on the rising influence of the Muslim Brotherhood in northern Lebanon, which Ms. Ghaddar characterized as a "Lebanese Hamas branch" strategically aligned with Hezbollah.
Overview
The hearing concluded with a consensus that U.S. policy must be "firm and comprehensive." Next steps mentioned included the upcoming visit of LAF Commander Joseph Aoun to Washington and a French-hosted conference in March, where the U.S. is expected to communicate strict expectations for Lebanese performance. Chairman Lawler closed the session by reiterating that the U.S. would not support "reinvesting in the same failed system" that allowed Hezbollah to thrive, signaling a shift toward a more transactional and condition-heavy relationship with the Lebanese state.
Transcript
[Gavel sounds.] The subcommittee on the Middle East and North Africa will come to order. The purpose of this hearing is to discuss key issues for U.S. policy towards Lebanon. This includes efforts to strengthen state institutions, advance economic reform, and ensure Hezbollah's disarmament. I now recognize myself for an opening statement. Good morning. I want to begin by thanking my colleagues for being here today and our witnesses for taking the time to share their insights on this critically important issue which, frankly, hasn't received sufficient scrutiny. Lebanon is at a crossroads. The November 2024 ceasefire agreement that brought conflict between Israel and Hezbollah to an end has provided the international community with an unprecedented opportunity for Lebanon. Right now, we have the chance to help this government break free of the shackles of Iran's malign influence. Hezbollah's influence is vastly diminished, thanks in large part to decisive Israeli action. But difficult choices now need to be made to permanently block Hezbollah's path to power. The stability, sovereignty, and long-term security of Lebanon depend on the Lebanese Armed Forces' ability to act as the sole legitimate military authority within the country. While the LAF has made initial progress towards ensuring Hezbollah's disarmament, implementation of the LAF's five-phase disarmament plan has been haphazard at best. Moreover, now more than ever, it is absolutely vital that Lebanon delivers on long-promised economic and structural reforms, including those stipulated by the IMF, in a real and meaningful way. Since 2019, Lebanon's banking sector has all but collapsed, thanks in no small part due to prolific corruption. In that same period, the country's currency, the Lebanese pound, has lost over 97 percent of its value relative to the dollar, leading to unprecedented hyperinflation. This has given rise to a dollarized cash economy, one in which corruption thrives and Hezbollah's malign influence persists. So long as Lebanon's economy remains weak and unregulated, Hezbollah and their Iranian backers will retain access to cash flows. This will allow them to quietly rebuild their power base as well as their military arsenal that threatens the stability of the entire region. Delivering on economic and structural reforms cannot just be an option or a second thought. These are vital, necessary conditions to set Lebanon on the right path, free from Hezbollah's malign influence. Not least because successfully implementing these reforms will open up Lebanon's ability to access much-needed financial support from the international community, including in areas formerly under Hezbollah's control. To be clear, no one wants to see a power vacuum emerge along Lebanon's border with Israel. I think we can all recognize how important it is for the Lebanese state to step up and start to deliver basic services there. But reinvesting in the same failed system that enabled Hezbollah's rise would be pure insanity. We'd merely be providing Hezbollah with an open door to undermine stability across the region at the expense of Lebanon's future. The international community needs to meet the moment. We cannot lose sight of the need to ensure the government fully delivers on long-pledged reforms. The stakes are too high. Ultimately, our goal is to ensure that American policy supports long-term stability and security across the Middle East. And that can only be achieved by closing the financial and regulatory loopholes that have allowed Hezbollah and its Iranian backers to thrive for far too long. I look forward to the day when these goals come to fruition, where Lebanon is a true partner in the Middle East, where they can join the Abraham Accords and seek normalization. And with that, I now recognize the ranking member for his opening remarks.
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