Hezbollah is prioritizing the reconstruction of its military capabilities as mounting financial pressure forces it to cut back on social assistance and compensation payments to its supporters, according to sources familiar with the group’s finances.

The sources told Nidaa Al-Watan newspaper that Hezbollah continues to pay salaries to its fighters, with some receiving between $600 and $700 a month, while higher-ranking members receive more depending on their rank and responsibilities. At the same time, the group has stopped or reduced several allowances and social services for its wider constituency and has been unable to deliver compensation it promised to families whose homes were destroyed during the 2024 war.

The shift reflects what one source described as an existential struggle for Hezbollah, with most of the funding it receives from Iran now being directed toward rebuilding its military arsenal and preserving its ability to operate as an armed group.

“The priority now is survival,” the source said. “The battle is existential.”

The source said Hezbollah’s financial position has deteriorated after several of its traditional funding channels were disrupted, including Qard Al-Hasan, gas stations and currency-exchange businesses affiliated with the group. Tighter controls at Lebanon’s airport and along its land and maritime borders have further complicated the movement of funds.

As a result, Hezbollah has been forced to reduce spending and concentrate its available resources on its military infrastructure, leaving humanitarian and social needs largely on hold.

The financial strain is particularly visible among families whose homes were destroyed or damaged during the 2024 war.

“Until now, the compensation they promised us has not arrived,” said Lina, a woman from the Bekaa Valley. “The check they gave me after the 2024 war is still in my handbag and has never been cashed. Every time I go to ask, I get no clear answer.”

“I think I’ve given up and will have to pay for the repairs to my damaged home myself. As for the family home that was destroyed, may God provide,” she said.

After the 2024 war, Hezbollah announced that Qard Al-Hasan would provide between $12,000 and $14,000 to each family whose home had been destroyed.

But the promised payments did not materialize on the scale initially announced. Some assistance was provided to families whose homes were damaged, but according to Lebanese reports, the distribution was selective and many people did not receive what they had been promised.

The financial difficulties coincide with an Israeli campaign aimed not only at Hezbollah’s military capabilities but also at the financial system that sustains them.

According to an extensive report by The New York Times, co-written by Yedioth Ahronoth journalist Ronen Bergman, Israel is seeking to disrupt the funds Hezbollah relies on to pay its fighters, rebuild infrastructure, compensate families and maintain the extensive social-welfare network it has used for decades to preserve support within Lebanon’s Shiite community.

That network has been a central pillar of Hezbollah’s power since the group was established in the 1980s.

For decades, Hezbollah presented itself as a provider of basic services to its constituency, offering medical treatment, food assistance, schools, hospitals and other forms of social support.

In many areas, particularly where the Lebanese state was weak or absent, the group effectively filled the role of a parallel provider.

But the sources said Hezbollah’s ability to maintain that system has been sharply weakened.

The consequences are increasingly visible among residents whose homes were destroyed and among displaced families waiting for assistance or the opportunity to return.

The longer reconstruction and compensation are delayed, the more visible criticism has become within Hezbollah’s traditional support base, the newspaper said.

A simple review of social media shows growing frustration among people who accuse the group of failing to meet its commitments, particularly as the war drags on and families remain displaced.

Hezbollah appears increasingly unable to suppress such criticism, the sources said.

The group is therefore facing a difficult trade-off: rebuilding its military capabilities while maintaining the financial and social system that has helped sustain its popular base for decades.

As it concentrates resources on military reconstruction, it risks losing more of the community support that was built partly on financial assistance and social services.

According to a U.S. State Department estimate issued before the war, Iran provided Hezbollah with around $700 million a year, representing the bulk of the group’s estimated annual budget of approximately $1 billion.

Lebanese, U.S. and Israeli officials have said Iran increased its financial assistance to Hezbollah over the past year.

But the group’s expenses have also soared, with the costs of war, military reconstruction, rebuilding infrastructure and supporting hundreds of thousands of displaced people placing additional pressure on its finances.

The increased Iranian funding has therefore not been enough to meet all of Hezbollah’s needs, according to the sources.

Money from Iran is transferred through several countries using the hawala system, an informal network that allows funds to move between brokers and unofficial financial companies without the physical cash itself having to cross borders.

There have also been reports that some money has been brought into Lebanon in cash by individuals.

In November, the U.S. Treasury Department announced sanctions against Lebanese currency exchangers and said Iran had transferred approximately $1 billion to Hezbollah during that year, most of it through the hawala system.

The disruption of traditional funding routes has forced Hezbollah and Iran to develop alternative ways of moving money, but sources say those methods are increasingly complicated and difficult.

Hezbollah has benefited for years from Lebanon’s financial system, the weakness of state institutions and its influence over parts of the Lebanese state. But that environment has changed dramatically.

The reported ban on Iranian aircraft landing at Beirut airport, following allegations that such flights were carrying money for Hezbollah, the fall of Bashar al-Assad’s government in Syria and the closure of several unofficial border crossings have all complicated the movement of funds.

The result is a financial battle that extends well beyond Hezbollah’s military infrastructure.