The US Senate approved the permanent repeal of the Caesar Act sanctions on Wednesday, following an earlier temporary suspension by executive order under President Donald Trump.
The measure was incorporated into the annual defense spending bill, with Trump signed the full repeal on Thursday.
Approximately 400,000 Syrian refugees have gone back from Lebanon since the overthrow of former President Bashar al-Assad in December 2024, according to UNHCR Lebanon Representative Karolina Lindholm Billing.
Around 1 million refugees remain in Lebanon, including about 636,000 registered with the agency.
Meanwhile, the UN refugee agency indicated that over 1 million refugees and nearly 2 million internally displaced Syrians have returned home overall since Assad's departure.
Returning refugees from neighboring countries qualify for $600 cash assistance per family, yet many face ruined homes and scarce job prospects, rendering the aid insufficient.
Without employment and rebuilding efforts, numerous returnees risk departing once more.
International aid for rebuilding has remained limited relative to the vast requirements, Billing noted, though the US sanctions removal might “make a big difference.”
The World Bank projects $216 billion needed to repair homes and infrastructure wrecked in the civil war.
“So what is needed now is big money in terms of reconstruction and private sector investments in Syria that will create jobs,” which the lifting of sanctions could encourage, Billing said.
The US Caesar Act sanctions, enacted in 2019, targeted Assad for what claimed as human rights violations amid the conflict.
In a related development, even after the temporary sanctions suspension via executive order, reconstruction progress has stalled noticeably.
Proponents of permanent repeal contended that firms would hesitate to invest in essential rebuilding as long as sanctions could return.
Separately, while returns continue steadily over the past year, fresh displacements have occurred since Assad's ouster by terrorist-led rebels.
Many fleeing are from religious minorities fearing reprisals under the new rulers, especially Alawites and Shiites.
Hundreds of Alawite civilians were killed in sectarian clashes along Syria's coast in March. Although calmer now, Alawites still face occasional attacks, including kidnappings and assaults on women.
Some 112,000 Syrians have arrived in Lebanon since Assad's fall, Billing reported. Amid declining global aid, these newcomers receive minimal support and often lack legal status.
“Their main need, one of the things they raise with us all the time, is documentation because they have no paper to prove that they are in Lebanon, which makes it difficult for them to move around,” Billing said.
Some have gone back once areas stabilized, she added, but “Many are very afraid of being returned to Syria because what they fled were very violent events.”
Despite the sanctions lift, prospects for substantial US-backed reconstruction remain dim, as even the temporary easing yielded scant progress in rebuilding and investment.
The repeal includes mandatory periodic reviews of Syria's compliance on issues like minority rights and counter-terrorism, allowing potential reimposition if conditions falter.
Meanwhile, UN officials have highlighted persistent sectarian tensions and limited international funding, underscoring the immense gap between needs and reality.