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.
The SmartPay connection
Gruenbaum was appointed to lead the FAS in January 2025, arriving with no prior government experience. The FAS oversees the SmartPay program, which handles hundreds of billions of dollars in federal employee charge card spending.
Ramp, a fintech startup valued at roughly $13 billion, has been positioning itself to modernize that very program. The company counts Thrive Capital among its backers, alongside Peter Thiel and Khosla Ventures. Gruenbaum has facilitated at least four meetings with Ramp executives regarding SmartPay.
The setup has drawn attention from Democratic Rep. Gerald Connolly, who announced a probe into the GSA’s relationships with Ramp in May 2025. The investigation is focused on whether standard contracting safeguards were bypassed and whether Gruenbaum’s dual role as government official and private investor created conditions for preferential treatment.
The Thrive Capital web
Thrive Capital, led by Joshua Kushner, brother of Jared Kushner, raised a record $10 billion fund focused on tech-enabled firms and AI.
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. The SmartPay opportunity, if it materializes, would represent a transformative 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 outcome of 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.
