Hezbollah is facing mounting financial pressure as thousands of families displaced by last year’s war with Israel await overdue housing assistance, sources told Nidaa Al-Watan newspaper. More than three months after the group’s financial arm, al-Qard al-Hassan, suspended payments, frustration is building among its core support base, according to residents and former members, signaling a deeper financial breakdown that threatens Hezbollah’s traditional role as a provider of economic and social stability.

The halt in payments comes as the group struggles to renew temporary housing allowances initially distributed to families whose homes were destroyed during the conflict. Since the ceasefire, Hezbollah had pledged to cover rent costs while reconstruction efforts moved forward; a promise that, for many, remains unfulfilled.

“The aid stopped months ago,” said a former Hezbollah fighter from southern Lebanon who spoke on condition of anonymity. “Now people are being evicted, and even the fighters haven’t received their salaries. This is worse than anything we’ve seen before.”

Hezbollah’s silence on the matter has only fueled growing discontent, especially as families face eviction from rented apartments. The group has blamed “technical reasons” for the delays, but sources familiar with its internal operations point to a broader financial collapse triggered by international sanctions and strained Iranian support.

Hezbollah had rapidly mobilized shelter and support during the early days of the war, housing families who fled front-line villages in the south. But as reconstruction efforts stall and financial transfers dry up, those temporary arrangements have become long-term liabilities.

According to residents, al-Qard al-Hassan has not disbursed any payments since early spring.

“This delay is not just about red tape. It reflects a collapse of the financial network that kept Hezbollah’s ecosystem running,” said the fighter.

The financial squeeze has rattled Hezbollah’s support base. According to multiple sources, frustration is rising in neighborhoods once considered strongholds. Families have begun expressing open dissatisfaction, as the lack of rent assistance leaves them exposed to eviction, with no clear commitment from the group on when — or if — payments will resume.

Rita Boulos, a lawyer and political activist, said Hezbollah’s once-loyal base is starting to lose patience.

“The people who believed they were protected by Hezbollah are now feeling abandoned,” she said. “There is no housing, no safety net, and no clear answers.”

Boulos warned that the group’s traditional tools of control, made up of a mix of ideological loyalty and security intimidation, are showing signs of wear.

“There’s visible strain. The image of Hezbollah as a provider is fading, and even fear is no longer enough to silence people facing real hunger and eviction.”

Sources close to the group say the crisis extends well beyond housing. Salaries to fighters and even mid-level commanders have been delayed. Hezbollah, once flush with Iranian backing, has struggled to maintain its payroll and essential services.

Western sanctions on Iran have significantly reduced Tehran’s ability to fund its foreign proxies. The economic strain of supporting Gaza and losses suffered during the war with Israel have only compounded Iran’s difficulties.

The recent assassination of senior Iranian commander Mohammad Saeed Izadi dealt another blow to the group’s financial apparatus. Izadi had reportedly visited Beirut just days before his death to finalize a new funding mechanism with Hezbollah leadership. His killing, sources say, cut short those efforts and left Hezbollah scrambling for alternatives.

Observers believe an undeclared understanding between Tehran and Washington — one that includes a pledge from Iran to halt funding for regional militias — may be influencing the group’s financial isolation.

“It’s no coincidence that funding stopped shortly after the U.S.-Iran ceasefire was announced,” said a source familiar with the situation. “Hezbollah is being forced to reassess its role, and Iran is pulling back to preserve what little influence it still has.”

Analysts say the financial crisis could have significant political consequences in Lebanon. Hezbollah’s dominance within the Shiite community has long been reinforced by its ability to deliver services and protection. That social contract is now under stress.

“If Hezbollah’s grip on its own environment weakens, space opens up for opposition movements,” Boulos said. “There is a potential for a political shift — not overnight, but the cracks are visible.”

Many observers say Hezbollah now faces a pivotal decision: cooperate with the Lebanese government and international demands, or risk further isolation and decline. Western powers and regional mediators have long called for the group to disarm in line with U.N. Security Council Resolution 1701 and to support Lebanese state sovereignty.

“If Hezbollah wants reconstruction to move forward, it must engage seriously with the state,” Boulos said. “Otherwise, it risks losing everything: its credibility, its support, and eventually, its influence.”