Trump administration unveils plan to restructure USAID, including renaming the agency and implementing blockchain technology

The Trump administration has unveiled a comprehensive plan to restructure the United States Agency for International Development (USAID).

The Trump administration is planning a major restructuring of the U.S. Agency for International Development (USAID), which will involve renaming the agency, cutting thousands of jobs, and introducing blockchain technology for aid distribution.

According to internal State Department memos seen by WIRED, USAID will be renamed U.S. International Humanitarian Assistance (IHA) and placed directly under the control of the Secretary of State.

The agency is also being drastically downsized, with the Department of Government Efficiency (DOGE) cutting the agency’s workforce and halting payments to many partner organizations.

This includes groups providing essential humanitarian aid in crisis zones.

DOGE, headed by Elon Musk, placed all USAID employees on administrative leave shortly after President Trump’s inauguration in January 2025.

The Trump administration claims that USAID has become ineffective and fragmented. They believe the agency has been stretched too thin for too long, wasting taxpayer money on programs without clear outcomes.

The new plan shifts the agency’s focus to key priorities—global health, food security, disaster response, and countering China’s influence—and every aid program will have a clear end date and strict success measurements.

The aim is 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 seen 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.

Experts in the humanitarian sector have expressed skepticism about the necessity of blockchain.

Linda Raftree, a consultant who helps aid groups adopt new technology, said: “It feels like a solution to a problem that doesn’t exist.”

Raftree explained that traditional systems can already track aid effectively. Meanwhile, Giulio Coppi from Access Now pointed out that blockchain offers no real advantages over existing payment systems.

Despite this, some humanitarian efforts have already tested blockchain with mixed results. For instance, the United Nations High Commissioner for Refugees has been using stablecoins to assist Ukrainians displaced by war.

Additionally, Kenya Red Cross experimented with blockchain for aid distribution, finding it can speed up money transfers in some cases.

However, critics caution that introducing blockchain creates new costs and complexities, especially challenging small non-governmental organizations on the front lines of disaster response.

Earlier this year, a federal judge issued a preliminary injunction against the administration’s plans to dismantle USAID and integrate it into the State Department. Despite this setback, the administration appears determined to proceed with its plans to cut the agency and bring it under the State Department’s wing.

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, which could potentially form the largest government blockchain project in U.S. history.