Tracking Government Spending with Blockchain

Introduction

The idea of leveraging blockchain technology to enhance government transparency has been discussed for over a decade. But it recently gained momentum when U.S. presidential candidate Robert F. Kennedy Jr. made a campaign pledge that if elected, he would place the U.S. government budget on blockchain. Although he did not win the presidency, Kennedy’s appointment as Secretary of the U.S. Department of Health & Human Services (HHS) presented an opportunity to pilot this transformative initiative within HHS. However, due to HHS’s complexity, the Government Blockchain Association’s (GBA) Budget, Accountability, and Transparency Working Group (BATWG) opted to identify a local health department to pilot the idea, opting for a phased approach.

A Phased Approach for Maximum Impact

The strategic plan involves four progressive phases, ensuring that lessons learned at each level inform the next:

• Phase 1: Local (County Health Department) Pilot – This initial pilot aims to test blockchain’s potential in budget, appropriations, and financial management, reducing fraud, and increasing transparency within the county health department. This pilot involves stakeholder interviews, process mapping, and developing a prototype blockchain system.
• Phase 2: State-Level Pilot — Building on Phase 1, this phase will expand the project to a state-level health department, refining the blockchain system and addressing additional complexities of state governance.
• Phase 3: National Pilot  — With insights from the local and state pilots, Phase 3 will implement blockchain within a federal government agency, demonstrating its scalability and effectiveness in a large, complex organization.
• Phase 4: Nationwide Implementation — The final phase aims to standardize blockchain-based budgeting, appropriations, and auditing across all federal departments, enabling transparent tracking of government budgets, appropriations, spending, and auditing on a national scale.

How Blockchain Technology Supports Public Sector Accountability

Blockchain technology’s immutable ledger ensures that all budget transactions are recorded transparently and cannot be altered. This increases public trust and holds government agencies accountable for their financial decisions. By providing real-time, verifiable data, blockchain empowers citizens to monitor government spending, reducing the risk of financial mismanagement.

Join the Movement: How You Can Get Involved

The GBA BATWG invites individuals and organizations passionate about government transparency to contribute to this historic initiative. As a GBA member, you’ll have access to industry insights, networking opportunities, and the chance to participate in research and pilot projects. BATWG holds weekly meetings where members can collaborate and share expertise.

To join the GBA and become a member of the BATWG, visit GBA Membership and send an email to workinggroups@GBAglobal.org.

Conclusion

The journey toward transparent government budgeting is underway, starting at the local level and scaling up to the national stage. By strategically piloting blockchain technology in progressively larger government entities, the GBA BATWG is paving the way for a future where government budgets, appropriations, and spending are transparent, verifiable, and accountable. Together, we can help shape a future where public trust in government financial management is stronger than ever.