Trump Administration Plans Blockchain Overhaul for USAID

The Trump administration is planning a restructure of the United States Agency for International Development (USAID).

According to a memo reported by Politico , the agency will be renamed the US International Humanitarian Assistance (IHA) and placed directly under the Secretary of State. 

As part of the restructuring, the memo states that the agency will “leverage blockchain technology” to track and secure aid distribution. The goal, according to the document, is to improve security, transparency, and accountability in how aid is managed.

“All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability,” the memo reads. However, it doesn’t explain exactly how this will work. It’s unclear whether USAID will start using cryptocurrencies or if blockchain will simply be used to track aid transactions.

The news has caught USAID staff by surprise. Many have been uncertain about the agency’s future since the administration moved to cut funding and shrink its workforce. Shortly after Trump took office, the State Department placed USAID employees on administrative leave, halted payments to partner organizations, and reduced the agency’s operations. A judge later blocked some of these actions, but now, with this new memo, it looks like the administration is still trying to cut down USAID’s role and bring it under tighter control.

However, experts in humanitarian aid aren’t convinced this is a good idea. Some say blockchain isn’t really needed. Linda Raftree, a consultant for humanitarian organizations, says, “It feels like a fake technological solution for a problem that doesn’t exist.” She argues that existing tools can already handle aid tracking effectively. Giulio Coppi, a senior humanitarian officer at Access Now, added “There’s no proven advantage that it’s cheaper or better.”

Meanwhile, some organizations have experimented with blockchain in aid distribution. In 2022, the UN Refugee Agency used stablecoins to provide cash to Ukrainians displaced by war. 

The Kenya Red Cross has also tested blockchain projects. However, experts warn that switching to a new system could be costly and difficult, especially for small NGOs. “The relative cost of new systems is harder for small NGOs,” an anonymous said.

The memo suggests the administration wants to tie funding to measurable outcomes rather than upfront payments. A USAID employee, speaking anonymously, pointed out that many contracts already work this way but warned that aid work is unpredictable. “Those kinds of agreements are often not flexible enough for the environments we work in,” they said. Aid organizations often need to adjust plans quickly in disaster zones, making rigid funding rules difficult to follow.

Critics say the push for blockchain may be part of the administration’s broader claims that USAID is inefficient or corrupt. Raftree disagrees and says, “It’s not like USAID was delivering tons of cash to people who hadn’t done things.”