Lebanon Urges Baghdad to Break Economic Dependence on Washington

Lebanon is intensifying efforts to reassert state control in the south, moving beyond security measures to focus on rebuilding schools, services, and livelihoods in war-affected areas. While recovery programs are emerging, a substantial funding shortfall threatens to undermine initiatives aimed at retaining residents and revitalizing regions suffering extensive damage to infrastructure, agriculture, and education.

The government introduced the “National Framework for Return, Early Recovery and Restoration of Basic Services” in 2026. This initiative covers resident returns, social protection, service restoration, and reconstruction preparations. However, a consolidated budget has yet to be announced. A key financing tool, the Lebanon Emergency Assistance Project (LEAP), implemented by the Council for Development and Reconstruction, was designed for up to $1 billion but has only secured $250 million, leaving a $750 million deficit.

Of the secured funds, $50 million is designated for immediate actions like debris removal and road clearing. Another $175 million will restore essential services such as water, energy, transport, health, and education. Additionally, $15 million is allocated for studies and design, with $10 million for project management. The framework also earmarks $455 million for reconstruction, most of which remains unfunded.

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The new response framework provides a basis for attracting funding, but it is still not fully financed.

In parallel, the government initiated a program in May valued at approximately 32 million euros for southern Lebanon and the Bekaa region, running until 2029. This program, supported by the European Union (24.8 million euros), Denmark (5.35 million euros), and the French Development Agency (2 million euros), targets local authorities, small businesses, and the agricultural sector, aiming to create jobs. Lebanese ministerial sources indicated that while the new framework provides a basis for attracting funding, it is not yet fully financed, and the Ministry of Social Affairs is actively seeking additional funds.

Social protection is a crucial component of the recovery efforts, aiming to keep residents in their communities and facilitate their return. The Ministry of Social Affairs provides cash assistance to about 230,000 families through its shock-responsive social safety net, benefiting over one million people based on average household size. This support is vital in areas where returning home depends on families' ability to repair dwellings, access services, and secure employment, positioning social support as integral to community re-establishment rather than just an emergency measure.

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continuing to work intensively to secure additional funding to help respond to the needs of affected groups.