Trump Administration Moves to Restructure USAID, Emphasize Blockchain and Strategic Focus
| Key Points: – The Trump administration aims to restructure USAID by renaming it the U.S. Agency for International Humanitarian Assistance (IHA) and placing it under the State Department. – The revamped agency will use blockchain technology to increase transparency and traceability in distributing aid. |
The Trump administration has unveiled a sweeping plan to overhaul the U.S. Agency for International Development (USAID), marking one of the most significant changes to American foreign aid policy in decades.
One of the most notable elements of the reorganization is the proposed use of blockchain technology in aid delivery.
Trump Administration Unveils Plan to Restructure USAID
The proposal, part of a broader federal reorganization effort, aims to reduce the agency’s scope while aligning its mission more closely with U.S. strategic interests and emerging technologies.
According to an internal memo first reported by Politico, the Trump administration intends to rename the agency the “U.S. Agency for International Humanitarian Assistance” (IHA) and place it directly under the authority of the Secretary of State. This structural change would significantly curtail USAID’s autonomy, centralizing oversight within the State Department.
The reorganization is being rolled out amid continued disruption at USAID following the formation of the Department of Government Efficiency (DOGE), an initiative driven in part by tech entrepreneur Elon Musk.
The DOGE initiative has already led to sweeping cuts across several government agencies, including USAID, resulting in thousands of job losses and the suspension of many foreign aid contracts.
The new strategic direction for USAID will focus primarily on four core areas: global health, food security, disaster response, and countering the influence of rival powers, particularly China.
The shift comes as the Trump administration seeks to compete more aggressively with Beijing’s expansive “Belt and Road” initiative, which has extended Chinese economic and diplomatic reach into many countries where the U.S. also seeks partnerships.
Founded in 1961 by President John F. Kennedy during the Cold War, USAID has long been a tool of American soft power, surviving political battles and the fall of the Soviet Union.
Blockchain Technology to Modernize Foreign Aid Distribution
The memo also outlines plans to embed blockchain into the agency’s procurement and disbursement systems, offering a tamper-proof, transparent record of aid flows.
“All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability,” the document states.
While details remain unclear—particularly whether digital currencies like stablecoins will be used—the goal is to reduce administrative costs, combat corruption, and enable real-time verification of fund transfers. However, the proposal acknowledges the practical challenges of rolling out blockchain in remote or underdeveloped regions, including the need for digital infrastructure, data privacy protocols, and staff training.
The use of blockchain in humanitarian aid is not without precedent. International organizations such as the United Nations High Commissioner for Refugees (UNHCR) and the Kenya Red Cross have experimented with the technology, with varying levels of success. Proponents argue that blockchain can modernize aid delivery, but it may add technical burdens for smaller NGOs and local partners.
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