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Trump Administration Pushes USAID Overhaul Despite Legal Roadblocks

Efforts include renaming the agency, reducing its scope, integrating blockchain technology, and aligning aid with U.S. geopolitical interests.

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Pete Marocco, deputy administrator-designate at the U.S. Agency for International Development (USAID), arrives to meet with members of Congress to discuss foreign assistance, on Capitol Hill in Washington, D.C., U.S. March 5, 2025.
Protesters hold placards as Pete Marocco, deputy administrator-designate at the U.S. Agency for International Development (USAID), attends a meeting with members of Congress to discuss foreign assistance, on Capitol Hill in Washington, D.C., U.S. March 5, 2025.
People protest as Pete Marocco, deputy administrator-designate at the U.S. Agency for International Development (USAID), attends a meeting with members of Congress to discuss foreign assistance, on Capitol Hill in Washington, D.C., U.S. March 5, 2025.

Overview

  • The Trump administration proposes renaming USAID to the U.S. Agency for International Humanitarian Assistance (IHA) and placing it under the State Department's authority.
  • A federal judge has ruled that efforts to dismantle USAID likely violated the Constitution, temporarily blocking further actions to shut down the agency.
  • The restructuring plan includes integrating blockchain technology to enhance transparency in aid distribution, though experts question its practicality in humanitarian contexts.
  • Jeremy Lewin, a former Department of Government Efficiency (DOGE) official, has been appointed to lead USAID, raising concerns about potential workarounds to the court's ruling.
  • Critics warn the overhaul has disrupted global humanitarian aid, with 83% of USAID programs terminated and its workforce reduced to fewer than 300 employees.