Wasim al-Adawi | Mohammad Kakhi | Amir Huquq
Since the Caesar Act was passed in 2019, it has been one of the most prominent tools of US pressure on the former Syrian regime, targeting its institutions and officials over allegations of war crimes. It also had a significant impact on ordinary Syrians.
After the regime fell in late 2024, a new political environment began to take shape, pushing toward a reassessment of sanctions. The issue became the focus of broad debate inside and outside the United States, culminating in the House of Representatives voting by majority to repeal the law. It then moved on to the Senate and the US president before the end of the year.
The process to repeal the act effectively began in June 2025, when Republican Representative Joe Wilson introduced a bill to repeal the Caesar Act. This launched a series of diplomatic and political moves that ended with the House approving a full repeal within the 2026 National Defense Authorization Act, amid controversy. Supporters from both the Democratic and Republican parties argued the step would help the Syrian people, while some opponents warned it would remove what they described as an important tool of pressure.
This file seeks to clarify the legal procedures required to repeal the law in Washington, the demands placed on Damascus in parallel with the repeal, and the political and economic impact on Syria.
Congress bottleneck easesFollowing Wilson’s initiative, meetings intensified between the US administration and Syria’s transitional government. US President Donald Trump announced his support for repeal, arguing the sanctions had lost their relevance after the former regime’s fall. He issued executive orders suspending parts of the measures pending a congressional decision.
In November 2025, Trump received Syria’s transitional president, Ahmad al-Sharaa, at the White House. Both sides said lifting sanctions was a basic condition for reconstruction and stability. The US Treasury Department also moved quickly to issue general licenses allowing economic transactions that had previously been prohibited, a step widely seen as paving the way for a final repeal.
Rebuilding Syria is among the most difficult tasks after the fall of the Assad regime, December 2025 (LAURENCE GEAI, MYOP for Le Monde)
Through the Defense Budget
That was still not enough to repeal the law. Caesar sanctions were included in the US defense budget, the National Defense Authorization Act, NDAA, because Congress typically ties legislation with security or strategic implications to the defense budget to ensure faster passage. It also underscores that sanctions on Syria were not merely an economic tool, but part of US defense policy and national security.
US Congress legal expert and attorney Samir Sabounji told Enab Baladi that when the US administration wanted to punish the former Syrian regime, it prepared a package of sanctions and included them under the name “Caesar” as a provision within the NDAA. When the sanctions were later tightened, that too was done through a provision in the same law, because the easiest way to pass a sanctions measure like Caesar is to fold it into a broader piece of legislation with many sections and provisions, such as the US defense bill.
If US lawmakers wanted to impose sanctions on the Syrian regime, or lift sanctions, through a standalone law, that would require greater effort and the chances of a vote in favor of imposing or repealing them would be lower than if it were included as a provision within the NDAA, Sabounji explained. The defense bill consistently enjoys broad consensus, and Congress routinely passes it every year due to the importance of the US Department of Defense budget.
According to Sabounji, successfully inserting the clause repealing the Caesar Act into the US defense budget indicates that both the House and Senate want to ensure the vote on this clause succeeds.
“Zero objections” in the House
For hours, lawmakers debated the NDAA during the House session that ultimately passed the bill, Sabounji said. They raised multiple issues, but there were no objections to repealing the Caesar Act itself. The defense bill contains many provisions, including the budget and the size of funding allocations for issues related to Israel, Ukraine, Taiwan, and other items that require debate.
There are certainly differences of opinion between Democrats and Republicans over the budget requested by US President Donald Trump. As a result, objections from both sides focused on issues unrelated to Caesar, and discussions mostly revolved around compromises and concessions by each party.
If there is noncompliance
No return of “Caesar,” but sanctions on individualsBrian Mast, the Republican chair of the House Foreign Affairs Committee from Florida, had opposed an unconditional repeal of the Caesar Act. He later changed his position and said during the House session, “We are lifting sanctions on Syria to give it a chance to build a better future in the post Assad era.”
He also said Congress gives the US president the ability to impose sanctions on individuals in Syria if the president decides doing so would serve US interests.
Sabounji noted that Mast’s stance aligns with President Trump’s position on giving Syria an opportunity to rebuild what Assad destroyed, meaning Mast almost entirely reversed his earlier position.
The US attorney also said the repeal law did not include a snapback provision that would restore Caesar sanctions if Syria fails to meet any of the required standards. Instead, the president was given flexibility to impose limited sanctions targeting specific individuals only.
The session saw a bipartisan majority vote, from both Republicans and Democrats, in favor of the NDAA, including the repeal of Caesar. Sabounji viewed this as a shift inside Congress following the administration’s supportive stance toward lifting the law.
After the defense budget bill, including the repeal of Caesar sanctions, passes the House, it will move to the Senate, then to the White House for signature, before the end of the year.
“Caesar” before the US Senate
Sabounji recalled what happened months earlier, when the US Senate voted in favor of its version of the NDAA, which also included a clause to repeal the Caesar Act unconditionally. He said what happens now is a reconciliation process between the Senate version and the House version, stressing there is broad agreement between the two chambers and that the vote is routine, with no expectation of delays or amendments.
Sabounji expects the Senate to pass the defense bill quickly in its session scheduled for early next week. The bill would then be sent to the US president for signature, after which it would enter into force. He also expects this to happen before the Christmas holiday at the end of this month.
On the US president’s power to object to laws, Sabounji explained that if both the House and Senate pass a law and send it to the president, the president can object by refusing to sign it. In that case, the bill returns to Congress, and if it does not secure two thirds support, it fails.
But in the case of the defense bill, the number of House members who voted in favor is 312 lawmakers, or 74% of the total. This approaches a decisive majority. Even if the president were to object, it would still pass because it already has a strong majority in the House and is expected to have a majority in Congress. It is also highly unlikely the US president would object to the NDAA, and Sabounji said this has not happened before.
Syrian President Ahmad al-Sharaa meets members of the US Chamber of Commerce in Washington, 11 November 2025 (Syrian Arab Republic Presidency)
Washington Watches, Damascus Must Prove Itself
A Four Year TestRepealing the Caesar Act is not merely an economic measure. It reflects a strategic repositioning that is reshaping US policy in the Middle East, and signals implicit recognition that power balances and alliances have shifted.
As Syria prepares to catch its breath after years of isolation, the central question remains: Does this shift mark the beginning of Syria’s reintegration into the global political arena, or is it simply a tactical move in a broader contest for influence?
Washington changes its monitoring approach
Arab affairs researcher Ali Fawzi said the US House of Representatives vote on the Caesar Act represents a strategic shift in Washington’s approach to the Syrian file, moving from comprehensive sanctions toward mechanisms of oversight and periodic assessment that could allow Syria to be gradually reintegrated into its political and economic surroundings.
In comments to Enab Baladi, Fawzi explained that lifting Caesar does not mean pressure will end, but rather that it will be reorganized through a framework of “political conditionality,” via reports issued every 180 days for four years.
This gives Damascus an opportunity to improve its external image and ease its isolation. At the same time, it places Syria under a public test in Washington and Europe regarding its commitment to the proposed security and human rights standards, Fawzi said.
“Congress’s vote on the Caesar Act represents a strategic shift in Washington’s approach to the Syrian file, moving from comprehensive sanctions toward periodic oversight and assessment mechanisms.”
Ali Fawzi, Arab affairs researcher
Support for Damascus and lowering tensions
Journalist and political researcher Firas Allawi said the vote sends a US political message pointing to a supportive stance toward the Syrian government and regional stability, within what appears to be a new strategy under US President Donald Trump aimed at rearranging the Middle East landscape.
The repeal of the Caesar Act is a pivotal step that opens the door to potential changes in Syria’s situation.
But it is not a magic solution, political writer Darwish Khalifa said. On one hand, repeal restores some hope that Syria can regain political stability and restart economic growth. On the other, it places the country under a heavy obligation to carry out deep internal reforms, including combating corruption, restructuring the army, security services, and judiciary in ways that ensure respect for human rights, and opening up to local forces to broaden participation in political life, Khalifa told Enab Baladi.
Economic, security, and political drivers
While the vote appeared to be a decisive step in the American shift toward Damascus, understanding its background shows it was not the product of a passing political moment. It came after a buildup of complex considerations and an overlap of domestic and external interests.
The US administration did not move in this direction until after a comprehensive review of the consequences of continued sanctions for regional stability and for Washington’s place in new Middle East power balances. Within that context, multiple factors converged, pushing decision makers in Washington to recalculate and make room for a more flexible approach toward Syria.
On the motives, Ali Fawzi outlined three tracks behind the US decision:
Economic considerations linked to Washington’s interest in opening the door to reconstruction and reviving Syria’s economy, in ways that serve regional and international interests Security imperatives aimed at preventing a vacuum in Syria that could be exploited by extremist groups or competing regional powers Domestic political calculations leaning toward recalibrating the burdens of foreign policy, alongside European, Turkish, and Gulf pressure to move the Syrian file toward a new settlementRestoring political balance
Firas Allawi suggested that lifting sanctions on Damascus is viewed as an entry point for restoring Syria’s economic and political balance, enabling renewed international engagement after years of restrictions imposed by the Caesar Act, which blocked official dealings with the Syrian government.
He said Republicans view regional stability as closely tied to the Syrian file, which pushed them to support the administration’s step to lift sanctions after more than four decades of economic isolation measures. The aim, he added, is to reinvigorate relations between Washington and Damascus and reduce points of tension, in line with a US vision of a more stable region that requires fewer resources and less ongoing strain.
A test for Damascus
According to a draft document prepared within the framework of the National Defense Authorization Act, lifting the law requires a review of the situation in Syria every 180 days over four years to ensure Damascus is taking the appropriate steps.
The draft specified areas where the Syrian government must show progress:
Working with the United States to eliminate the Islamic State group and prevent its return Removing foreign fighters from senior positions in the government and security apparatus Protecting religious and ethnic minorities and ensuring fair representation Refraining from any unjustified military action against neighboring countries Implementing the March 10 agreement between the Syrian government and the Syrian Democratic Forces (SDF), including security and political measures Combating money laundering, terrorism financing, and proliferation activities Prosecuting individuals responsible for “gross” human rights violations since December 8, 2024 Taking verifiable steps to stop the production and trafficking of drugs, including CaptagonAli Fawzi said these clauses establish clear, measurable oversight criteria, but argued their implementation faces multiple challenges, most notably:
Fragility of official institutions and the continued influence of armed groups Regional ties of certain actors inside Syria, which could obstruct efforts to restructure decision making centers Economic corruption and the monopolization of reconstruction files by networks of influence Lack of trust between Damascus, the SDF, and local components, making the March 10 agreement in need of genuine international guaranteesFawzi noted Washington is shifting from “accountability through sanctions” to “governance through assessment.” He added Europe will likely respond unevenly, with some states open to gradually restoring relations, while others link any step to human rights and transitional justice files.
He said these moves could reshape Syria’s external standing, making gradual reintegration conditional on the government’s adherence to an international roadmap of demands.
Putting the house in order
Darwish Khalifa argued the decisive factor for fully lifting sanctions is putting the domestic house in order, amid geographic and social fragmentation, widespread weapons, and multiple foreign interventions.
He suggested controlling these factors is a basic condition for restoring the state trajectory, so that moving forces converge with the road leading to Damascus.
Khalifa said the government may slow the implementation of US demands under various pretexts, including countering the Islamic State and limited internal capacity, but that would bring rising pressure. He added that two negative reports from the US president to Congress would shift the relationship with Syrian authorities.
Conditional opening
Firas Allawi said the American opening is conditional on not igniting the region or pushing it toward confrontations, particularly with Israel, and on ensuring Iran and allied militias do not return to Syria.
Allawi said this shift indicates Syria’s diplomacy is moving toward a more open approach to the West after years of alignment with the eastern axis. In his view, Damascus is drawing closer to Western policies and moving out of traditional conflict alignments.
He does not expect major revisions to these new policies, saying the US role is limited to monitoring developments on the ground and intervening if any understandings are breached.
Allawi added Washington is betting on the Syrian government’s ability to strengthen internal control, achieve economic stability, and create an environment that enables companies and investments to enter, reducing potential future fallout.
The Syrian American Council meets US Senator Chris Van Hollen to discuss repealing the Caesar Act, 21 November 2025 (Mohammad Alaa Ghanem/Facebook)
What is required of the Syrian government?
Although the vote to repeal the Caesar Act marked a notable shift in the US position, it does not mean the path is now open without conditions for Damascus.
According to Arab affairs researcher Ali Fawzi, repeal, as much as it represents economic and political relief, comes with clear expectations from Washington and the international community to secure stability in the post sanctions period.
The burden now shifts to the Syrian side, which finds itself facing a genuine testing phase that requires tangible steps to build trust and demonstrate readiness to enter a new stage of regional and international relations.
Fawzi said the Syrian government faces a major test, and its success in turning the US vote into a political and economic gain depends on taking a series of urgent steps, most notably:
Launching real field operations against remnants of the Islamic State group, and making reliable reports on the results available Removing foreign fighters from decision making positions, and announcing a clear implementation plan regarding them Implementing the March 10 agreement with the Syrian Democratic Forces (SDF) transparently, including the required security and political measures Issuing decisions that ensure the protection of minorities and activating independent complaint mechanisms Combating corruption and opening reconstruction tenders through transparent mechanisms subject to local and international oversight Moving diplomatically to explain the response plan to partners in Congress and European capitalsFawzi concluded that the US decision opens a rare political window for Syria, but benefiting from it depends on Damascus showing realistic political will. The opportunity exists to rebuild the state and its economy, but ignoring the conditions would return the country to a renewed cycle of pressure and sanctions, in a more organized form.
Caesar and the Syrian economyThe Syrian government is expected to accelerate the issuance of economic legislation and develop a more flexible business environment to attract companies and capital, alongside investing in infrastructure to prepare suitable conditions for reconstruction.
Since the United States and Western countries imposed sanctions on Damascus, multiple sectors of Syria’s economy have been severely affected, making the lifting or modification of sanctions a crucial issue for the country’s economic future.
Curbing the dominance of the black market
Central Bank of Syria Governor Abdul Qader Hasriyeh said on 16 September that remittances to Syria are a “lifeline” for the Syrian economy, and that transfers from the United Arab Emirates alone range between $700 million and $800 million annually.
Hasriyeh expected “significant” growth in Syria’s banking sector over the next five years, saying the number of banks will reach between 30 and 35 local, foreign, and Arab banks. He said Syria would then have an effective monetary policy capable of delivering growth and price stability, alongside a broad return of investments and major projects.
Benjamin Fève, an economic researcher and senior analyst at Karam Shaar Advisory, said the transition will not be quick. Correspondent banks will move cautiously due to de risking policies and the costs of reopening international relationships, as well as the urgent need to develop compliance systems such as Know Your Customer (KYC) and Know Your Business (KYB).
Still, Fève pointed to a clear trend toward reactivating official channels, with indications of a return to using the SWIFT system and an expansion of regulatory oversight, paving the way for a gradual shift from informal remittances to more transparent, institutional channels.
Economist Abdul Hakim al-Masri agreed, saying lifting sanctions will give the banking sector an opportunity to reintegrate into the regional and international financial environment, provided it is accompanied by genuine internal reforms.
Al-Masri said updating banking infrastructure and strengthening customer verification and anti money laundering mechanisms is the first step toward reactivating official channels, gradually reducing reliance on unregulated transfers.
This aligns with the assessment of economist and researcher Abdul Moneim Halabi, who told Enab Baladi that lifting sanctions offers an important opportunity for the banking sector to rebuild its standing, provided it is accompanied by serious reforms to technical and legal structures and stronger anti money laundering procedures.
Halabi said the independence of the Central Bank of Syria and the clarity of its monetary policy are key factors in restoring confidence and reducing the role of the black market. Any real shift, he added, also requires developing banking staff and modernizing operating systems.
In the experts’ view, ending the dominance of the black market will not happen overnight. It is a gradual process tied to the ability of official institutions to provide reliable and safe alternatives for citizens and for financial actors inside Syria and abroad.
Syrian President Ahmad al-Sharaa meets members of the US Chamber of Commerce in Washington, 11 November 2025 (Syrian Arab Republic Presidency)
Impact of the repeal on the value of the Syrian pound
The Syrian pound strengthened after the US House of Representatives voted by majority on 10 December to pass the defense budget bill, but it slid again when markets opened on 13 December.
Economic analyst and researcher Benjamin Fève said the market’s initial reaction is usually driven by positive perceptions, which explains the pound’s rapid rise as the US vote moved toward repeal. However, he noted this improvement cannot be treated as a sufficient indicator of recovery. Its impact depends on whether it can be sustained, and on the emergence of real financial inflows through formal channels and credible monetary policies that support stability.
Fève said that while a stronger pound can help reduce imported inflation and inject some confidence into markets, it may carry side effects if it rises beyond its natural range, such as reducing the local value of external remittances or weakening the competitiveness of Syrian products. For him, “sustainability” is the key test. A lack of confidence or continued absence of organized inflows could make the improvement temporary and return markets to the same anxiety that preceded the decision, at a time when investors are looking for predictable stability rather than sudden spikes.
A better standard of living?
With sanctions moving toward repeal, many Syrians are asking how this could reflect on their daily lives after a long deterioration in incomes and purchasing power.
Economist and researcher Abdul Moneim Halabi said living conditions will not improve simply because restrictions are eased. He argued it would take at least a year of sustained work to reactivate local productive capacity, especially in agriculture and food industries, which underpin food security.
Halabi told Enab Baladi that investing in the production of wheat, barley, and olives, expanding new energy projects, and rehabilitating telecommunications networks could increase public revenues and enable more balanced import options. This would ease pressure on prices while also protecting local products.
Economist Abdul Hakim al-Masri, for his part, linked the lifting of sanctions to people’s ability to improve living standards through a more active investment environment. With remittances returning through formal channels and reduced reliance on the black market, al-Masri expects transfer costs to fall and processing speed to improve, directly boosting household incomes.
Al-Masri also said the entry of new companies and increased competition would push prices downward, while job creation would raise incomes and stimulate the market. Removing the “external obstacle” of sanctions may be only a first step, he added, but improving living conditions requires internal stability and clear legislation that encourages investors to operate inside the country, so that these economic expectations translate into tangible gains people can actually feel.
An employee at a currency exchange office in Damascus, 16 April 2025 (AFP, Louai Beshara)
Syrians are optimistic
Many Syrians are optimistic that economic conditions will improve after the repeal of sanctions imposed under the Caesar Act. According to an online poll conducted by Enab Baladi on its website, 54% of 552 respondents believe Syria’s economic situation will improve significantly after Caesar sanctions are lifted.
Meanwhile, 27% said the improvement will be limited due to internal crises that Syria is still experiencing, while only 20% of respondents believe lifting sanctions will not affect Syria’s economy at all.
From memorandums of understanding to projects on the ground
Karam Shaar Advisory documented memorandums of understanding worth at least $25 billion as of 31 October. Since the fall of deposed President Bashar al-Assad’s regime in December 2024, Syria has signed around 50 agreements and memorandums of understanding across sectors including air transport, ports, bridges, energy, health, education, agriculture, and relief.
With external obstacles easing, most notably the Caesar Act, the memorandums signed in recent months have a real opportunity to move from desk drawers to actual implementation, economist Abdul Hakim al-Masri said.
Lifting restrictions on financial transfers is expected to open the way for stalled projects to begin within a few months, provided the procedural track is completed, including the requirement for the Syrian government to submit periodic reports every six months to demonstrate compliance with the required standards.
Al-Masri said this oversight provides investors with greater reassurance, after sanctions had been a direct driver behind the freezing of many agreements.
However, turning these memorandums into completed projects requires deeper reforms inside Syria’s legislative and administrative environment, economist and researcher Abdul Moneim Halabi said. He noted that a lack of transparency and weak governance have been among the main reasons why medium and long term investment has remained high risk.
Halabi argued that improving the business environment will not happen without reviewing the relevant laws, easing bureaucratic procedures, and applying anti money laundering standards. He also called for activating the role of chambers of commerce and industry and business councils, while reducing the government’s executive role and maintaining a supervisory, regulatory, and planning role, reinforced by clear mandates for specialized committees in the next People’s Assembly.
In Halabi’s view, the success of this system is a basic condition for moving memorandums of understanding from the signing stage into measurable economic reality on the ground.
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