Thrive Capital's Trump Ties Spark Federal Contract Scrutiny

Josh Gruenbaum, the Commissioner of the Federal Acquisition Service at the General Services Administration, has been overseeing government contracts for companies backed by Thrive Capital, the venture firm founded by Joshua Kushner. The problem: Gruenbaum is also an investor in Thrive Capital.

Gruenbaum arrived at FAS in January 2025 with zero prior government experience, yet now controls SmartPay—a program managing hundreds of billions in federal employee spending. Fintech unicorn Ramp, valued at $13 billion and backed by Thrive, has been positioning itself to modernize this program. Gruenbaum has already held at least four meetings with Ramp executives about SmartPay contracts.

Democratic Rep. Gerald Connolly launched a probe into GSA's Ramp relationships in May 2025. The investigation is examining whether standard contracting safeguards were bypassed and whether Gruenbaum's dual role as government official and private investor created conditions for preferential treatment.

Thrive Capital itself is worth knowing about. Led by Joshua Kushner, brother of Jared Kushner, the firm just closed a $10 billion fund targeting tech-enabled companies and AI ventures.

Why fintech investors should pay attention

Ramp has built a legitimate business. A $13 billion valuation doesn't materialize from nowhere. The company's corporate card and expense management platform has attracted real enterprise customers and serious venture backing, including backing from Peter Thiel and Khosla Ventures. The SmartPay opportunity, if it materializes, would be a significant government contract.

If Connolly's probe finds evidence of preferential treatment, or even if it simply generates enough negative headlines, Ramp could face heightened scrutiny on every future government engagement. Venture capital firms with government-adjacent portfolio companies should be watching this closely.

The investigation could establish new expectations around disclosure, recusal, and the management of conflicts when government appointees have private investment portfolios that overlap with their official responsibilities.