Lebanon Sanctions, Stabilization, and Support Act

This bill, titled the "Lebanon Sanctions, Stabilization, and Support Act," seeks to bolster Lebanon's rule of law and democratic institutions by implementing a dual approach of sanctions and support. It grants the President authority to impose sanctions on foreign persons who knowingly engage in activities that undermine Lebanon's stability. Such activities include providing material support to Iran's illicit financing of armed non-state actors like Hezbollah, impeding the Lebanese Armed Forces' (LAF) and Internal Security Forces' (ISF) efforts to establish a state monopoly of arms and disarm Hezbollah, or delaying banking sector reforms. The sanctions described include blocking property, prohibiting financial transactions, and rendering individuals ineligible for U.S. visas or admission. However, the bill includes exceptions for humanitarian assistance, intelligence activities, and compliance with international obligations, and mandates that sanctions should not adversely impact legitimate economic activity or humanitarian conditions in Lebanon. These sanctions are set to terminate five years after the bill's enactment. The legislation also outlines significant stabilization efforts, directing the Secretary of State to continue humanitarian assistance in areas like health, protection, and water/sanitation. It establishes an incentive fund for the reconstruction of Lebanese government services and civilian infrastructure, and a separate fund to provide livelihood and scholarship assistance, including salaries and stipends, for members of the LAF and ISF, authorizing $20 million annually for three years. Crucially, a significant portion of these stabilization funds is restricted until the Lebanese government declares Hezbollah's military activities illegal and the LAF implements directives to disarm Hezbollah, though a waiver is possible. The bill also authorizes substantial security assistance for the LAF and ISF over five years, including hundreds of millions for Foreign Military Financing and other programs. Similar to stabilization funds, 50 percent of initial security assistance is conditional on the Lebanese government's actions against Hezbollah, with an exception for special operations units. Further security assistance is contingent on the LAF and ISF demonstrating meaningful progress in countering Iranian proxy forces, including Hezbollah, Hamas, and Palestinian Islamic Jihad, and on the Lebanese government's plan to expand state services. These funds are intended to build capacity, counter malign actors, implement disarmament decisions, and interdict revenue sources like Captagon and other illicit goods. The bill mandates regular briefings to Congress on these efforts and the impact of U.S. assistance. Finally, the bill includes extensive oversight provisions, requiring strategies and reports on stabilization assistance, including support for Syrian refugee return, bolstering LAF capabilities, and mitigating aid diversion to Hezbollah. It also mandates annual reports on the Lebanese government's, LAF's, and ISF's progress in disarming Hezbollah, expanding state services, implementing specific disarmament decisions, detailing Iran's support for Hezbollah, assessing U.S. coordination between the LAF and Israel Defense Forces, identifying banking sector reforms, and progress towards peaceful relations with Israel.