The Trump administration is proposing a revamp of the U.S. Agency for International Development (USAID) that could see blockchain technology implemented to improve how foreign aid is tracked and allocated.
What Happened: According to a document circulating within diplomatic circles, officials are advocating for blockchain to underpin a new procurement system aimed at strengthening transparency and oversight in how USAID distributes funds.
The proposed plan suggests leveraging blockchain to secure and track disbursements, though specifics regarding the technology's architecture--whether public, private or hybrid--are yet to be disclosed.
The document argues this system could incentivize aid partners to focus on meaningful outcomes, shifting away from box-ticking exercises tied to project activities.
The broader strategy is part of a sweeping reform to address what Trump officials have long called inefficiencies within USAID.
USAID, responsible for delivering U.S. foreign aid and development programs globally, has recently come under scrutiny from the Trump administration.
President Donald Trump and officials aligned with Elon Musk's government reform task force, known as DOGE, have raised concerns over what they view as wasteful spending on non-essential programs.
The agency faces pending budget reductions and restructuring efforts.
Earlier actions included freezing some aid distributions and scaling back the agency's workforce. Those moves triggered court challenges, including a federal injunction that paused some reforms.
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Why It Matters: Critics have warned that pulling back on USAID’s activities could undermine U.S. diplomatic leverage and jeopardize critical humanitarian missions.
The draft calls for U.S. aid programs to be streamlined and more narrowly focused on regions vital to national security and economic interests. It proposes clear timeframes and metrics to evaluate program success, with a goal of improving efficiency and concentrating resources where they are most impactful.
In addition to blockchain integration, the document suggests renaming USAID to the U.S. Agency for International Humanitarian Assistance (IHA) and aligning its operations more closely with the State Department.
According to sources, these changes would consolidate politically sensitive projects and reinforce the agency's focus on health, disaster response, and food security.
It remains unclear whether Secretary of State Marco Rubio or other senior administration officials have formally approved the overhaul, which may require legislative backing for some elements to move forward.
The blockchain pilot floated for USAID mirrors similar deliberations within Musk's DOGE unit, which is examining ways to apply blockchain across federal government functions.
Reports earlier this year indicated DOGE has been consulting blockchain providers to explore applications for government finance, property management, and payment systems.
Though the discussions are still in their early stages, the effort reflects growing interest in the technology among federal policymakers. Advocates argue that blockchain could improve efficiency and reduce fraud by introducing immutable records for public spending.
“Public spending should be tracked on a transparent blockchain ledger,” Binance founder Changpeng Zhao said previously, endorsing blockchain's potential to bring accountability to government finance.
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