Over $330 million worth of Small Business Administration (SBA) loans were awarded to 115 years old who remained listed as alive in Social Security databases, revealed the Department of Government Efficiency (DOGE).
The most alarming that has garnered public attention is a 9-month-old infant who received a loan of $100,000, according to reports.
In an interview with Fox News on March 25, President Trump said the government calls it "a pure fraud." He further clarified, saying, "We would like to use the words waste and abuse."
Further, Kelly Loeffler, the 28th U.S. Small Business Administration Administrator, said on X , "The Biden Admin enabled and covered up large-scale fraud, waste, and abuse at the SBA."
Could blockchain have stopped the fraud?
Blockchain could have helped, given that all transactions are traceable and, once recorded, immutable. This feature of blockchain helps prevent the misuse of public funds.
For example, if government loans or aid were handled on a blockchain, the system could instantly confirm identities and ensure that only the right people got the money — as it is impossible for a 9-month-old baby to get a $100,000 loan.
It also means the public—or auditors—could see where every dollar goes, making it less likely that fraud, bribery, or mismanagement will slip by.
Blockchain eliminates the role of intermediaries and ensures that money is distributed fairly and transparently, using automated rules—restoring confidence in the management of public resources.
However, blockchain is not a cure-all!
It is expensive, difficult to implement, and raises privacy concerns. The code is inherently permanent, and thus, a mistake with code is challenging to fix. This is why transparency, robust human oversight, and regulation are essential to ensure that government funds are spent wisely.
Recent updates indicate that the Trump administration plans to restructure USAID and may use blockchain to secure and track aid distribution more transparently.
