On December 10, the U.S. House of Representatives approved a massive defense bill known as the National Defense Authorization Act (NDAA), authorizing a record $901 billion in annual military spending. The bill also includes the repeal of the Caesar Syria Civilian Protection Act of 2019, signaling a major shift in U.S. policy toward Syria and generating widespread anticipation in Syria's political and economic circles.
The repeal of the Caesar Act-- one of the harshest measures imposed on Syrians for many years-- has sparked significant optimism in Syria, as the law had long constrained economic recovery and international engagement. The repeal has far-reaching implications for Syria's future reconstruction, investment climate, and reintegration into the global economy.
A Long-Awaited Legislative Shift
The Caesar Act was among the most consequential measures imposed by Washington against Syria's former regime and its allies, particularly due to its secondary sanctions, which allowed the United States to penalize foreign individuals and institutions engaging with Syrian entities already under U.S. sanctions.
In May, during a meeting in Saudi Arabia with Syria's interim president, Ahmad al-Sharaa, U.S. President Donald Trump announced his intention to lift all sanctions on Syria. While his administration temporarily suspended some restrictions, the permanent repeal of the Caesar Act required congressional legislation.
The NDAA is expected to receive final approval before the end of the year following a vote in the U.S. Senate, after which President Trump is expected to sign it into law. In parallel, another bill was submitted to Congress in November 2025 proposing the repeal of the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 and the Syrian Human Rights Act of 2012, which are expected to be debated early next year.
Repealing the Caesar Act and the Path to Reconstruction
The House of Representatives recently advanced a decisive vote to repeal the Caesar Act, a pivotal and long-awaited step to remove a significant barrier to reviving Syria's economy. Experts say the repeal lays the foundation for economic recovery and opens the door to a new phase of reconstruction.
What Is the Caesar Act?
The Caesar Syria Civilian Protection Act of 2019 authorizes sanctions against any government or private entity that provides support to Syria's former regime or its affiliated entities, or contributes to Syria's reconstruction.
The law empowers the U.S. president to impose sanctions on any company or individual investing in Syria's energy, aviation, construction, or engineering sectors, as well as those providing loans to the former regime (Article 102).
It also opened the door to targeting the Central Bank of Syria, subject to a U.S. Treasury report determining whether there were "reasonable grounds" to believe the bank was primarily involved in money laundering (Article 101). In December 2020, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) formally designated the Syrian Central Bank, despite it already being effectively restricted under Executive Order 13582.
Impact of Sanctions on the Syrian Economy
The Caesar Act were the strictest sanctions Syria had ever faced. The law prevented Syrian banks from dealing with international financial institutions, disrupted imports and exports, and imposed sweeping restrictions on economic activity related to Syria.
Experts and activists have long stressed that ordinary Syrians suffered the most, as sanctions restricted access to essential goods and deterred major international companies from entering the Syrian market. Lifting the law represents a critical turning point and provides the economic foundation for reconstruction and the return of global firms.
Immediate Market Reactions and Economic Expectations
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