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From Punishment to Containment: the Caesar Act Repealed

Repealing the Caesar Act marks a cautious US shift that opens the door to engagement with Syria – without lifting oversight or altering regional power balances

Moaz Al-Hamad by Moaz Al-Hamad
2025-12-21
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From Punishment to Containment: the Caesar Act Repealed
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The inclusion of the repeal of the US sanctions law known as the Caesar Act within the annual defence authorization legislation is increasingly viewed as a signal of a shift in Washington’s approach to Syria. Rather than treating Syria solely through a punitive framework, the move reframes the issue within the context of US national security and regional stability, while opening a limited political and economic window for Syria’s transitional government. At the same time, analysts stress that the step does not alter regional power balances, remove mechanisms of oversight and accountability, or resolve longstanding international disagreements over Syria’s future and its most sensitive files.

A US Shift

The US House of Representatives passed legislation last Thursday to repeal the Caesar Act sanctions imposed on Syria, as part of its vote on the defence authorization bill for the coming year. The measure followed extensive deliberations and two rounds of voting, ultimately passing with majority support in the chamber.

According to US-based assessments of the move, Hiba Al-Qudsi, Washington bureau chief for Asharq Al-Awsat, told +963 that incorporating the repeal of the Caesar Act into the defence budget constitutes “clear evidence of a fundamental shift in congressional priorities toward Syria.” She argued that the change reflects a new perception of Damascus as a potential partner in counterterrorism efforts and regional stabilization, rather than an outright adversary as it had long been treated.

Al-Qudsi explained that placing the repeal within defence legislation, rather than passing it as a standalone bill, underscores a growing belief in Congress that Syria has become part of the US national security equation – linked to Israel’s security and the fight against ISIS – rather than merely a humanitarian sanctions file.

Asked whether this shift is institutional or tied to the administration of President Donald Trump, Al-Qudsi said the evidence points to a combination of both. She noted that the repeal followed intensive diplomatic efforts by Syria’s interim government, supported by the Syrian diaspora and pressure from regional allies of Washington, alongside direct commitments made by Trump after his meeting with transitional Syrian President Ahmad Al-Sharaa in May 2025 and the issuance of a temporary executive order the following month.

She added that the broad vote in the House, backed by both Republicans and Democrats, reflects an institutional consensus that goes beyond the current administration. With Republicans holding a majority following the 2024 elections, Congress, she said, views repealing the Caesar Act as an opportunity to redirect US resources toward larger strategic challenges such as China, while maintaining strict legislative oversight over Syria.

Ongoing Oversight

Offering a different perspective, retired Brigadier General Hisham Jaber, head of the Middle East Centre for Studies and Research in Beirut, told +963 that repealing the law would not affect regional power balances, but would directly help Syria begin reconstruction and economic recovery.

On the issue of monitoring and accountability, Al-Qudsi emphasized that mandatory reviews every 180 days remain a “classic tool of legislative oversight designed to balance powers.” Under the new framework, the White House is required to submit reports demonstrating the Syrian government’s commitment to combating ISIS, protecting minority rights, preventing foreign recruitment, and refraining from unjustified military actions against neighbouring states, including Israel. Partial sanctions could be reimposed if these conditions are violated.

She described this mechanism as a blend of political pressure and compliance guarantees – a “suspended sword” over the transitional government that aims to push it toward internal reforms and security understandings, while ensuring congressional continuity in US Syria policy across future administrations.

Regionally, Al-Qudsi argued that repealing the Caesar Act fits into a broader strategy of “smart containment” aimed at reducing Russian and Iranian influence in Syria. This comes amid Moscow’s efforts to retain its military bases and Tehran’s declining leverage following the fall of the former regime. According to her, accompanying US financial support is intended to strengthen the transitional government and prevent economic collapse that could reignite instability and extremism.

Domestic Stakes

From a Syrian domestic perspective, Samer Ka’karli, secretary of the political bureau of the Syrian Democratic Left Party, told +963 that the legal text lifting sanctions is short, but opens an important window to strengthen the legitimacy of the transitional government, both internally and externally. He described the move as part of a broader attempt by political actors to restore state institutions and reposition Syria within the international system.

Ka’karli explained that externally, lifting sanctions signals an effort to demonstrate Syria’s capacity to confront challenges and reengage as a member of the international community. Internally, the retreat of Russian and Iranian influence – particularly in the oil sector – could allow for a more independent foreign policy, or at least one less tightly bound to external powers.

He added that an improvement in living conditions one year after the formation of the transitional government could bolster its popular legitimacy. Economic openness, he said, could also serve as an entry point for broader reforms, including administrative efficiency, improved services, removal of sanctions-era restrictions, activation of trade, training programs, and stronger oversight institutions.

At the same time, Ka’karli warned of institutional risks, particularly the danger of replacing internal domination with new forms of external influence driven by uncontrolled capital inflows. Without strong regulatory frameworks, he cautioned, new interest networks and forms of corruption could emerge, alongside legal uncertainty, social pressures, and political instability.

“Investment alone does not build a state,” Ka’karli said, stressing the need to use economic openness to improve institutional performance through specialized academic and financial expertise, fair resource distribution, and immediate activation of legislative and oversight tools as a safeguard ahead of large reconstruction contracts.

On accountability and transitional justice, Ka’karli insisted that sanctions relief must remain tied to clear standards of responsibility. He warned that economic openness could become a pretext for sidelining justice under the banners of reconstruction and investment unless accompanied by transparent, institutional mechanisms to address past crimes.

“Lifting coercive sanctions is not the end of the road,” he concluded. “The interim government’s need is not one built on international deals, but one based on fair distribution of resources.”

Regional Calculations

In a parallel assessment of the regional landscape, Brigadier General Hisham Jaber told +963 that regional actors continue to play divergent roles in Syria, noting that Turkey, Saudi Arabia, and Iran each occupy distinct positions shaped by their own interests in the transition process.

Regarding potential regional risks linked to sanctions relief, Jaber argued that differences between Washington and certain regional capitals are inevitable, particularly on issues such as the future of eastern Syria, the role of the Syrian Democratic Forces, and the multiplicity of foreign military presences on Syrian territory. However, he stressed that these differences are unlikely to derail the sanctions relief process itself.

“Regional and international disagreements will persist,” Jaber said, “but they will not obstruct the easing or lifting of sanctions as long as the US decision continues in this direction.”

For his part, US Congressman Joe Wilson has welcomed the passage of the full repeal of the Caesar Act, expressing hope for its swift approval in the Senate and signature by the president. He noted that the repeal came without conditions after removing the automatic reimposition clause, transferring sanction authority to the president on an individual basis rather than through the law itself.

According to Syria’s state news agency SANA, the development followed intensive diplomatic efforts by the Syrian government, Syrian-American organizations, and the Syrian diaspora in the United States, with support from allied and friendly states. The Caesar Act, enacted in 2019, imposed sweeping sanctions on individuals and institutions linked to the regime of Bashar al-Assad until its overthrow in late 2024.

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