More than a year after the end of the war between Israel and Hezbollah, which caused widespread destruction in South Lebanon, the Lebanese state has formally launched its reconstruction effort, albeit with very limited public funding.
Within the framework of the 2026 state budget, Parliament’s Finance and Budget Committee approved allocations for the Council for Development and Reconstruction (CDR), the Council of the South, and the Higher Relief Committee.
It also endorsed the transfer of funds from the emergency reserve for shelter and repairs, a move committee chairman Ibrahim Kanaan described as “a positive signal from the Lebanese state to our people, within the limits of the budget.”
Committee sources said a total of $90 million was transferred from the reserve: $67 million to the Council of the South and $24 million to the Higher Relief Committee.
With the approval of these allocations, the state has effectively begun the reconstruction process with what lawmakers themselves describe as a very modest sum, after waiting for more than a year for foreign aid that never materialized. This marks the first direct state funding for reconstruction since the war ended in November 2024.
Foreign envoys have told Lebanese officials in recent months that international support for reconstruction is contingent on Lebanon implementing a package of financial reforms and, crucially, achieving exclusive state control over weapons. Lebanese officials believe the issue has since become even more complex, tied in particular to the trajectory of agreements with Israel.
The fate of a reconstruction conference spearheaded by France remains uncertain, especially as Paris has recently prioritized plans for a conference to support the Lebanese army, expected early next year.
Meanwhile, political divisions in parliament over expatriate voting have stalled legislative work, derailing the approval of World Bank loans linked to reconstruction that could total up to $500 million, according to Kanaan. He warned that the loans could be withdrawn if parliament fails to ratify them before the end of the year.
Parliamentary sources said lawmakers from the so-called Shiite duo — Hezbollah and the Amal Movement — insisted on reallocating part of the relatively large budget reserve toward reconstruction, arguing that the state must send a positive signal to citizens who have been neglected for over a year.
According to the sources, many lawmakers went along with the proposal under pressure, amid fears they would otherwise be held accountable by residents, especially given the risk of building collapses threatening lives.
Ali Hassan Khalil, an MP from Amal’s Liberation and Development Bloc, called on the government to issue the regulatory framework for reconstruction, saying the approved funds, while limited, would help address urgent shelter needs and serve as a starting point for a major national effort.
MP Hassan Fadlallah, of Hezbollah's Loyalty to the Resistance Bloc, said reconstruction requires large sums but stressed that the state cannot remain idle waiting for foreign funds, while welcoming any non-politicized, unconditional assistance.
Researcher Mohammad Shamseddine of Information International estimated total direct war damage at $8.5 billion, with reconstruction costs of about $2.3 billion. He told Asharq Al-Awsat the approved funding represents only a fraction of what is needed and confirms the state’s limited capacity, noting that foreign aid is unlikely before a definitive settlement and lasting peace with Israel.
The move drew objections from the Lebanese Forces party. MP Ghada Ayoub, a member of the Strong Republic Bloc and the Finance Committee, criticized what she called pressure to divert public funds to reconstruction, arguing that financing should come through a dedicated, internationally supervised fund and external assistance.
She said the priority should instead be strengthening the Lebanese army to ensure stability and enable the safe return of residents.
