Trump Administration Pushes Blockchain for USAID Aid Tracking

The Trump administration is advocating for the integration of blockchain technology into the procurement process of the United States Agency for International Development (USAID). This initiative aims to revolutionize how the agency tracks and distributes international aid, potentially transforming the delivery of aid on a global scale. Officials believe that recording every dollar spent and every shipment dispatched on an immutable digital ledger could significantly enhance transparency within USAID. This move is expected to reduce fraud and expedite payments to partners on the ground. However, critics have raised concerns about the uneven internet access in developing countries, which could impede the implementation of this technology. Additionally, data-security risks remain a significant concern.

According to a memo obtained by a news outlet, the administration plans to rename USAID as the US International Humanitarian Assistance (IHA) and place it directly under the Secretary of State. The document emphasizes the use of blockchain to “secure and trace all distributions,” shifting the focus from procedural inputs to measurable outcomes. This proposal comes amid ongoing restructuring at USAID following the creation of the Department of Government Efficiency (DOGE), an initiative aimed at streamlining federal agencies. The DOGE, primarily driven by Elon Musk, has already put USAID staff on administrative leave, reduced its workforce, and suspended payments to many partner organizations, actions that have stalled critical humanitarian programs. Although a federal judge later blocked the agency’s full dismantling, the new memo suggests that the administration still intends to curtail USAID’s autonomy and fold its functions into the State Department.

Embedding blockchain in USAID would mean transitioning from paper-based audits and manual tracking to a real-time, tamper-proof record of aid flows. Proponents argue that this could reduce administrative costs, deter corruption, and allow donor countries and recipients to verify fund allocation instantly. However, deploying such technology across remote aid projects would require robust digital infrastructure, clear data-privacy safeguards, and training for field staff. As the Trump administration moves forward with this proposal, lawmakers and aid groups will closely examine the extent of the changes to USAID and whether using blockchain is effective for delivering aid. This raises a larger question about whether new tools like blockchain, and the politics behind them, should reshape how the US delivers foreign aid.