Trump administration officials have created a proposal to overhaul the US foreign aid program. This was created in a section that explores how to use blockchain technology to track aid distribution and increase accountability.
The plan will rename the US International Development Agency (USAID) as the US International Humanitarian Agency and introduce it directly under the Secretary of State’s authorities, according to the initial report from Politico that shows the inside. document It is said to be circulating at the State Department.
In the “Modernized Performance-Based Procurement” section, the document “refers to initiatives for protecting and tracking” to “fundamentally improve security, transparency and traceability through blockchain technology.”
This proposal comes as USAID faces an uncertain future. In January, the State Department placed agency staff on administrative leave, halting payments to partner organizations, prompting legal challenges.
Then there is a federal judge issued Following Doge’s efforts, a temporary injunction for the dismantling of the agency; Government Efficiency BureauIt was founded by Elon Musk, who tried to do so.
It remains unknown who created the document, as it appears to be scanned from the physical copy. Decryption I contacted the agency to learn more.
Innovation, efficiency, impact
The proposal further argues that the approach “promotes innovation and efficiency” and focuses on “specific impacts” rather than “just completing activities and inputs.”
The implementation of blockchain is part of a broader reform aimed at impose strict control on the distribution of aid, and appears to require measurable results through “third-party metrics, not self-report.”
While major structural changes may require Congressional permission, the document shows that some reforms could be implemented through executive action.
More broadly, the proposed overhaul limits USAID’s focus on global health, food security and disaster response, and wastes foreign aid initiatives in terms of scope.
The document also outlines a reconstructed framework based on three organizational pillars (safeter, more thriving, stronger) led by three agencies under the direction of the Secretary of State.
This idea resonates with existing literature on how blockchain technology can be used for public goods.
Articles from 2018 Published The Journal for Humanitarian Action cites the core characteristics of technology, saying, “Providing transparency and accountability can eliminate corruption.”
Edited by Sebastian Sinclair
