TLDR
- Trump administration plans to restructure USAID, renaming it to U.S. International Humanitarian Assistance (IHA) and placing it under direct State Department control
- Thousands of USAID employees have been cut and most foreign aid contracts canceled as part of government efficiency measures
- Blockchain technology will be incorporated into aid distribution and procurement processes for increased transparency and tracking
- Many experts question blockchain’s necessity in humanitarian aid, arguing existing systems can already track aid effectively
- The reorganized agency will focus on global health, food security, disaster response, and countering China’s influence
The Trump administration has unveiled a comprehensive plan to restructure the United States Agency for International Development (USAID). The plan involves renaming the agency, cutting thousands of jobs, and implementing blockchain technology for aid distribution.
According to internal State Department memos, USAID will be renamed U.S. International Humanitarian Assistance (IHA). The agency will be placed directly under the control of the Secretary of State.
The restructuring follows weeks of disruption at USAID. Shortly after President Trump’s inauguration in January 2025, the Department of Government Efficiency (DOGE), led by Elon Musk, placed all USAID employees on administrative leave.
DOGE has slashed the agency’s workforce and halted payments to many partner organizations worldwide. This includes groups providing essential humanitarian aid in crisis zones.
“Inefective and Fragmened”
The Trump administration argues that USAID has become ineffective and fragmented. They believe the agency has been stretched too thin for too long, wasting taxpayer money on programs that lack clear outcomes.
The new plan shifts the agency’s focus to key priorities. These include global health, food security, disaster response, and countering China’s influence.
Every aid program will now have a clear end date and strict success measurements. The administration aims to rebuild USAID as a smaller, more results-driven agency that directly benefits U.S. interests.
In a move that has surprised many, blockchain technology will be central to the overhauled agency. According to the internal memo reviewed by WIRED, “All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability.”
The memo does not specify whether this will involve cryptocurrency, stablecoins, or simply using blockchain as a ledger for tracking aid. The technology is intended to prevent waste and fraud in aid distribution.
Criticism
Experts in the humanitarian sector have expressed skepticism about the necessity of blockchain. Linda Raftree, a consultant who helps aid groups adopt new technology, told WIRED,
“It feels like a solution to a problem that doesn’t exist.”
Raftree explained that traditional systems can already track aid effectively. Giulio Coppi from Access Now pointed out that blockchain offers no real advantages over existing payment systems.
Despite the criticism, blockchain has been tested in some humanitarian efforts with limited success. The United Nations High Commissioner for Refugees has used stablecoins to assist Ukrainians displaced by war.
The Kenya Red Cross has also experimented with blockchain for aid distribution. These examples show the technology can speed up money transfers in some cases.
However, critics warn that blockchain introduces new costs and complications. This is especially challenging for small non-governmental organizations that often work on the front lines of disaster response.
A federal judge has issued a preliminary injunction against the dismantling of USAID. Despite this, the administration appears determined to proceed with its plans to cut the agency and incorporate it into the State Department.
The integration of blockchain aligns with broader efforts by the Trump administration to modernize federal technology. According to Bloomberg, Musk has been exploring blockchain to enhance various government processes.
DOGE’s focus includes improving tracking of federal expenditures, securing data, and streamlining payments. This could potentially create the largest government blockchain project in U.S. history.
