Defense Minister Elias Murr said the fund hoped to attract donations from the millions of Lebanese living abroad as well as local residents. Murr said he was making the first contribution, of 1.0 billion Lebanese pounds ($670,000).

Two Democratic lawmakers have said they were holding up a $100 million approved package of US military aid to Lebanon over concerns that the army was working closely with Hezbollah. The move came after a deadly cross-border clash between Lebanese and Israeli troops last week.

Murr has criticized the announcement, saying that any party that wished to help the military had to do so without conditions.

He said on Saturday the new fund was part of an initiative launched by Lebanese President Michel Suleiman to build up the army.