A newly surfaced proposal concerning blockchain is now circulating within the US State Department hinting at a potential shift in how the United States Agency for International Development (USAID) operates.
Under a set of recommendations backed by Trump administration officials and linked to the Elon Musk-led DOGE government efficiency unit, the agency may begin utilizing blockchain technology to enhance transparency and security in foreign aid disbursement.
Adopting Blockchain in Foreign Aid Reform
According to a draft document obtained by Politico, blockchain integration is being considered as part of a broader effort to modernize and restructure USAID’s procurement processes.
The proposal outlines that all aid distributions could be tracked using blockchain to “ensure accountability,” “reduce inefficiencies,” and allow implementing partners “greater flexibility.”
Although the proposal doesn’t clarify whether a public, private, or hybrid blockchain system would be used, it emphasizes the benefits of “secure and traceable” fund flows for international aid programs.
Meanwhile, USAID, the US agency responsible for administering foreign development assistance, has faced criticism in recent years over perceived inefficiencies and spending priorities.
The proposal aligns with ongoing efforts from the Trump camp to realign foreign aid programs with national strategic interests. It describes current aid structures as too “expansive and disorganized,” urging a shift toward focused initiatives tied to measurable outcomes in regions critical to US interests. The document wrote:
A better approach would be to foster peace and stability in regions critical to U.S. interests, catalyze economic opportunities that support American businesses and consumers, and mitigate global threats such as pandemic diseases.
Potential Restructuring and Strategic Realignment
Alongside blockchain adoption, the document proposes renaming USAID to the “U.S. Agency for International Humanitarian Assistance (IHA)” and moving the agency under the direct control of the State Department.
Areas of focus would include global health, food security, and disaster response, with an emphasis on reducing politically oriented programs and streamlining operations.
The recommendations follow past efforts by the Trump administration to limit USAID funding and staff, moves that were met with legal pushback and public criticism.
While the document reflects a serious policy proposal, it does not yet represent formal government action. The proposal acknowledges that some aspects would require congressional approval and legislative changes.
It is also unclear whether Secretary of State Marco Rubio or other senior officials within the current administration have reviewed or approved the recommendations.
Still, the introduction of blockchain as a transparency mechanism signals a growing interest in applying emerging technologies to government operations—an area of focus that may continue regardless of future political leadership.
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