The Trump administration is reportedly planning substantial reforms to U.S. foreign aid programs, with a focus on transparency and accountability. The core of the proposal involves leveraging blockchain technology to meticulously track the flow of funds.
The plan, which has been circulating within the State Department, also suggests renaming the U.S. Agency for International Development (USAID) to the U.S. Agency for International Humanitarian Assistance. If enacted, this new agency would fall under the jurisdiction of the Secretary of State. The proposal was initially reported by Politico on March 19th.
One key aspect of the proposal is “performance-based procurement,” which aims to introduce blockchain technology to effectively provide and monitor aid distribution. According to the document, “All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability.” Further, the plan intends to “leverage blockchain technology to secure transactions” as part of its procurement modernization strategy for aid distribution. The document, however, does not specify which blockchain platforms would be utilized.
Changes to USAID Structure
The proposal portrays USAID as a narrower entity, concentrating on key priorities such as global health, food security, and disaster response. This would occur under the new structure, the U.S. Agency for International Humanitarian Assistance (IHA), within the State Department. The plan outlines a tripartite model: “Safer, More Prosperous, and Stronger,” to help identify the kinds of procurement activities the Secretary of State will oversee.
The Trump administration has previously faced legal challenges due to earlier actions, including placing USAID staff on administrative leave and halting certain funding streams. As reported by the New York Times, a federal court has temporarily ordered a partial restoration of the agency’s operations, though this measure is believed to be temporary. The restructuring would require executive action and congressional approval, setting the stage for considerable debate among policymakers who will consider its implications.
It’s important to note that the Trump administration has not yet officially commented on these reported structural changes to USAID.
