Trump Team Eyes Politically Connected Startup to Overhaul $700 Billion Government Payments Program

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Just before Donald Trump’s inauguration, Ramp, a financial technology startup, presented a proposal on how to address wasteful government spending. In a lengthy blog post called “The Efficiency Formula,” Ramp’s CEO and an investor shared ideas similar to Trump and Elon Musk’s views. They suggested that federal programs were plagued by fraud and that practical business strategies could offer a quick solution.

Ramp specializes in corporate credit cards and AI software for spending analysis. Although the company doesn’t currently have federal contracts, their post hinted at the government considering hiring them. They proposed that just as Ramp assists businesses in managing finances, they could help government agencies in the same way.

Shortly after, Ramp garnered interest from key figures within the Trump administration, securing multiple private meetings with officials from the General Services Administration (GSA), the agency overseeing federal contracting. GSA is eyeing Ramp to participate in the government’s $700 billion internal expense card program, SmartPay. Trump appointees at GSA have been moving swiftly to involve Ramp in a charge card pilot program worth up to $25 million.

Ramp, established six years ago, has received substantial backing from influential Silicon Valley figures, including Peter Thiel, a prominent venture capitalist and early Trump supporter. The company has raised approximately $2 billion in venture capital, with investments from firms connected to Trump and Musk.

The attention given to Ramp by GSA raised concerns, suggesting potentially unfair contracting practices. Critics emphasized the importance of impartially selecting the best option for taxpayers. GSA emphasized that its actions aimed to combat waste, fraud, and abuse in government spending.

Gruenbaum, a high-ranking GSA official, played a significant role in promoting Ramp, which some found unusual. GSA is set to determine the future of the SmartPay contract by year-end, with plans for a revamped program. SmartPay, offering credit cards to government employees, is essential for operations and features strong fraud prevention measures.

GSA’s new leaders have expressed doubts about the SmartPay program’s efficiency, leading to restrictions that caused disruption within government agencies. Ramp’s potential involvement in SmartPay, including the pilot program, has sparked interest and raised questions about the fairness of the selection process.

Despite the uncertainties surrounding Ramp’s engagement with GSA and the SmartPay program, the company’s interest in government contracts and industry connections hint at the possibility of future involvement in federal spending initiatives.