Trump Administration Pushes Blockchain to Make Aid Transparent, Deepen USAID Reform Amid Spending Scandal
Washington, D.C. – A sweeping reform proposal from the Trump administration is drawing attention as it calls for modernizing the U.S. Agency for International Development (USAID) by integrating blockchain technology, aiming to end longstanding problems with waste and lack of transparency in international aid spending.
According to a leaked document discovered by Politico, the plan includes renaming USAID to the International Humanitarian Assistance (IHA) agency and placing the agency under the State Department. One of the key reforms is the use of blockchain to track and secure financial transactions, thereby ensuring that U.S. taxpayer dollars are used more transparently, responsibly, and efficiently.
Blockchain: A Strategic Option in the Fight Against Aid Fraud
The proposed new system would eliminate traditional fixed-cost or cost-plus-interest payments that are not tied to results. Instead, payments would be directly linked to measurable outcomes, with blockchain acting as the platform for authenticating and verifying disbursements.
Policymakers believe that adopting a distributed ledger would prevent fraud, cut wasteful spending, and create a truly transparent oversight mechanism. The move is expected to raise the profile of the United States in international aid, while clearly differentiating it from rivals like China.
DOGE and financial scandal highlight the need for reform
The proposal comes as the Department of Government Efficiency (DOGE), founded by billionaire Elon Musk, has released a series of damning investigative reports on wasteful spending by USAID. Among the spending that came under fire were:
- $1.5 million for a “diversity workplace” program in Serbia
- $70,000 to fund a “DEI musical” in Ireland
- $2 million spent on gender reassignment surgery in Guatemala
- Millions of dollars for an irrigation program in Afghanistan that allegedly inadvertently supported opium cultivation
The DOGE report also revealed that some of the aid went to groups linked to Al Qaeda in Syria, and that EcoHealth Alliance – an organization linked to the Wuhan lab – also received millions of dollars in funding from USAID.
Ending a series of programs and reorienting policies
The investigation led the Trump administration to quickly cut 83% of USAID programs, saving billions of dollars in the budget. At the same time, the new reform proposal aims to increase cooperation with the private sector and non-profit organizations with good performance records instead of continuing to rely on permanent contractors or UN organizations.
However, to implement this plan, it will need the approval of the US Congress and changes to some current legal regulations. However, observers say the upcoming reauthorization could be an opportunity to lay the foundation for a more efficient, transparent and accountable international aid system, with blockchain playing a technological core role.
Digitizing and making aid transparent is no longer an option, but a vital requirement if the US wants to maintain its global prestige and influence in the new technological era.