The United States is stepping up efforts to ensure that funds earmarked for Lebanon’s reconstruction do not reach Hezbollah or other non-state armed groups, as Washington expands its campaign to disrupt the group’s financial networks, a U.S. State Department official told Al Jadeed.

Under what Washington calls “Operation Economic Outcast,” the United States is committed to “protecting Lebanese institutions from Hezbollah’s corrosive financial and political interference,” the official said.

“These networks threaten not only regional stability but also the economic interests of the people whom Iran claims to serve,” the official said, adding that Washington would continue working with regional and international partners to isolate Iran’s “terrorist proxies” and disrupt the financial channels that support their operations.

Reconstruction funds under scrutiny

The issue of reconstruction financing has become a central part of the U.S. approach to Lebanon, with Washington seeking guarantees that international and Lebanese resources allocated to rebuilding the country will not be diverted to Hezbollah or other armed groups.

Under the “Trilateral Framework,” Lebanon and the United States have committed to preventing funds from flowing to any entity, organization or individual linked to non-state armed groups.

The Lebanese government has also explicitly committed to ensuring that reconstruction funds remain outside the control of such groups, according to the U.S. official.

The commitment reflects growing concern in Washington that money entering Lebanon’s financial system for reconstruction could potentially be redirected through networks linked to Hezbollah, particularly as the country seeks international support for rebuilding areas affected by conflict.

The United States has said it will use a range of tools to prevent that from happening, including sanctions against individuals and institutions that facilitate Hezbollah’s illicit financing.

Focus on Lebanon’s financial system

Washington is also supporting Lebanese authorities in tracing and disrupting illicit cash flows and strengthening the country’s ability to investigate money laundering and terrorist financing.

The State Department official said U.S.-funded training had helped strengthen the capacity of Lebanese authorities to investigate financial crimes.

In 2025, the Financial Crimes and Money Laundering Division of Lebanon’s Internal Security Forces opened anti-money-laundering investigations at a rate more than 49% higher than during the same period in 2024, the official said.

The official attributed the increase directly to U.S.-supported training.

U.S. assistance has also helped Lebanon develop a strategic anti-money-laundering plan and improve mechanisms for detecting, reporting and investigating financial crimes, including offenses that contribute to the financing of terrorist organizations and transnational criminal networks.

Sanctions and financial controls

The United States says disrupting Hezbollah’s financing is not only a counterterrorism priority but also part of protecting Lebanon’s institutions and economy.

Washington has continued to impose sanctions on individuals and institutions it says facilitate Hezbollah’s financing, while supporting Lebanese security agencies in identifying illicit financial flows and disrupting them.

The approach is particularly significant as Lebanon seeks international assistance for reconstruction and attempts to restore confidence in its financial institutions.

For Washington, ensuring that reconstruction money reaches its intended recipients — rather than armed groups or networks affiliated with them — is therefore a key condition of broader efforts to support Lebanon’s recovery.

The U.S. official said Washington would continue working with Lebanese authorities and international partners to strengthen financial controls and prevent Hezbollah and other non-state armed groups from accessing resources intended for Lebanon’s reconstruction.