A Trump administration blueprint proposes a sweeping overhaul of the U.S. foreign aid system, aiming to restructure the U.S. Agency for International Development (USAID) and implement blockchain technology to secure and track financial distributions.
The plan would rename the agency the U.S. Agency for International Humanitarian Assistance (IHA) and place it under direct State Department control.
The reorganization includes eliminating several bureaus within USAID, shifting their functions to the State Department, and narrowing the agency’s focus to global health, disaster response, and food security. As part of this effort, IHA would coordinate all humanitarian initiatives, streamlining oversight under the Secretary of State.
Blockchain Integration to Modernize Oversight
In a section labelled “modernized, performance-based procurement,” the proposal outlines a new method to monitor aid transactions using blockchain technology. According to the document, this digital ledger system would “radically increase security, transparency, and traceability.” Payments to implementing partners would be linked to measurable outcomes rather than activity-based reporting.
All distributions would be tracked through a blockchain platform, reducing the risk of fraud and enabling third-party verification of results. The approach would replace traditional cost-plus contracts with results-based awards, demanding accountability and performance metrics verified independently.
The plan states that the shift would “encourage innovation and efficiency” and reward partners with proven records of timely, budget-conscious delivery. Faith-based and smaller entities with expertise in agriculture, energy, and AI would be favored under the new system, which reduces entry barriers tied to past U.S. government contracting experience.
Structural and Legislative Overhaul Required
Renaming USAID and embedding IHA within the State Department would require amending the Foreign Affairs Reform and Restructuring Act of 1998 and the Foreign Assistance Act. The proposal would also abolish USAID’s current legal status as an independent establishment and reassign congressional appropriations to new accounts aligned with IHA’s streamlined mission.
The restructuring outlines three strategic pillars: “Safer,” focused on humanitarian aid; “More Prosperous,” centring on trade and investment through a merged DFC; and “Stronger,” realigning politically oriented programs under the State Department. A specific agency would lead each pillar with clear mandates and performance expectations.
The proposal comes amid legal scrutiny. USAID operations were paused earlier this year, and a federal injunction halted its dismantling after lawsuits challenged actions led by the Department of Government Efficiency. The document’s origin remains unclear, with signs that it was scanned from a physical copy and circulated internally at the State Department.
Implementation would depend on congressional support, though some changes could advance through executive authority. The broader vision positions aid as an instrument of strategic influence, with technology-enabled transparency at its core.
