U.S. Urges Lebanon to Crack Down on Hezbollah Funding Ahead of 2026 Parliamentary Vote, Treasury Official Says

U.S. presses Lebanon to cut Hezbollah funding ahead of 2026 parliamentary vote, Treasury official says

Beirut — A senior U.S. Treasury official said during a visit to Beirut on Monday that Washington is pressing Lebanese authorities to intensify efforts to stop the flow of funds to Hezbollah ahead of next year’s parliamentary elections and to pursue prosecutions connected to a Hezbollah-affiliated quasi-bank.

Under Secretary for Terrorism and Financial Intelligence John K. Hurley, who led a delegation from the Treasury and the National Security Council, told Lebanese leaders the U.S. assesses Hezbollah is attempting to bring about $1 billion into the country by year’s end, though "exactly how many dollars they have brought in, we don’t know." He praised steps taken so far to tighten illicit finance controls but urged still stronger and more rapid action.

"We were very frank with the president, the prime minister and the other senior officials that there’s a window right now, particularly the window between now and the election," Hurley said.

The parliamentary vote is scheduled for May 2026, although debate over the voting system for Lebanon’s large diaspora has prompted calls to delay the ballot. Hurley noted Hezbollah and its allies performed strongly in municipal elections earlier this year and are seeking to translate those gains into parliamentary seats.

How funds are moving

Since last year’s conflict, Lebanon has tightened screening at its only international airport and halted direct flights from Iran, Hezbollah’s main patron. Nevertheless, Hurley said funds continue to arrive as cash and gold carried in suitcases and increasingly through digital means, including cryptocurrency.

Before visiting Beirut, the U.S. delegation met officials in the United Arab Emirates and Turkey, which U.S. officials have identified as transit points for money moving from Iran to Lebanon, urging those countries to shut the routes. Given the volume involved, Hurley warned that "somewhere there are banks that are either knowingly or unknowingly facilitating getting money into the country," and singled out exchange houses as "a major part of the problem." The Treasury has announced sanctions targeting financial operatives who channel funds to Hezbollah through exchange shops.

Al-Qard al-Hasan and calls for prosecution

Washington has urged Lebanon to take action against al-Qard al-Hasan, an organization that publicly operates as a charity but functions like a quasi-bank outside the formal Lebanese financial system. In addition to its military wing, Hezbollah runs schools, hospitals and subsidized grocery outlets; al-Qard al-Hasan provided interest-free loans and savings accounts and was a lifeline for many after Lebanon’s 2019 financial collapse. The U.S. contends the institution is being used to evade sanctions and has called for prosecutions of those who violate Lebanese law or international sanctions.

"There should be prosecutions of people who are violating Lebanese law, who are violating sanctions, using that entity to fund Hezbollah," Hurley said, urging Lebanese officials to take action.

Broader context: conflict and reconstruction

The most recent round of Israel–Hezbollah hostilities began after the Oct. 7, 2023 Hamas-led attack on Israel and escalated; exchanges intensified into a wider conflict by September 2024. A U.S.-brokered ceasefire nominally paused major fighting in November 2024, but Israel has continued near-daily strikes in Lebanon and occupies several strategic positions along the border, saying it aims to prevent Hezbollah from regrouping. Hezbollah has claimed one attack on Israel since the ceasefire.

International reconstruction aid for southern Lebanon remains largely on hold and is conditional on Hezbollah relinquishing remaining weapons — a demand the group says it will not meet while Israeli strikes continue.