Thrive Capital’s ties to Trump adviser raise federal contract concerns

A conflict-of-interest investigation has emerged involving Thrive Capital, a leading venture firm, and federal contracting processes. Josh Gruenbaum, who became Commissioner of the Federal Acquisition Service (FAS) at the General Services Administration in January 2025, holds dual roles as both a government official and an investor in Thrive Capital, which is led by Joshua Kushner. The FAS oversees the SmartPay program, which administers hundreds of billions of dollars in annual federal employee charge card spending—a high-stakes procurement opportunity.

The focal point of concern centers on Ramp, a fintech startup valued at approximately $13 billion that has positioned itself to modernize the SmartPay program. Ramp counts Thrive Capital among its primary backers, alongside notable venture investors Peter Thiel and Khosla Ventures. According to the primary reporting, Gruenbaum facilitated at least four meetings between FAS officials and Ramp executives regarding SmartPay contract discussions. This pattern prompted Democratic Rep. Gerald Connolly to announce a formal congressional investigation in May 2025 focused on whether standard contracting safeguards were bypassed and whether Gruenbaum's investor status in Thrive Capital created preferential treatment conditions.

The structural concern is particularly acute given Gruenbaum's background: he was appointed to lead the FAS without prior government experience, arriving directly into a role overseeing some of the federal government's largest payment infrastructure. The investigation specifically examines whether his dual status—federal official and Thrive Capital investor—enabled circumvention of normal procurement processes that typically ensure competitive bidding and arms-length negotiations.

Ramp itself represents a substantive business opportunity rather than a speculative startup. The company's $13 billion valuation reflects demonstrated enterprise adoption of its corporate card and expense management platform and serious venture backing. If Ramp successfully secures the SmartPay modernization contract, it would represent a transformational government award with significant implications for the company's growth trajectory and the fintech sector's role in federal infrastructure modernization. However, the legitimacy of such a contract award depends entirely on whether competitive procurement processes were followed and whether conflicts of interest were properly managed or disclosed.