Just a few days prior to US President Donald Trump’s second inauguration, financial technology firm Ramp had released a detailed blog post titled “The Efficiency Formula,” outlining strategies to curb wasteful government spending.
The 4,000-word blog post, authored by Ramp’s CEO and a key investor, proposed that federal programs, plagued by fraud, could potentially benefit from efficient business solutions.
The ideas seemingly mirrored those supported by Trump and his strong supporter, billionaire Elon Musk, who has been vocal about streamlining government operations.
Ramp, a company specializing in corporate credit cards and AI-driven spending analysis software, positioned itself as a potential partner for government agencies.
As first reported by ProPublica, Ramp was lacking current federal contracts, however, the company suggested its tools, already used by businesses to manage budgets, could be adapted for public sector needs.
Social media posts from Ramp reinforced this pitch, hinting at its readiness to serve the government.
The startup quickly gained traction within the Trump administration.
Within the first three months of Trump’s term, Ramp executives secured at least four private meetings with appointees at the General Services Administration (GSA), the agency responsible for overseeing major federal contracts.
Some of these discussions were facilitated by Josh Gruenbaum, the Federal Acquisition Service commissioner and the nation’s top procurement officer.
Sources indicate that GSA is considering Ramp for a slice of the $700 billion SmartPay program, which manages government expense cards.
A pilot program, potentially worth $25 million, is under discussion, even as Musk’s Department of Government Efficiency cancels numerous federal contracts.
Ramp’s rise is said to be bolstered by its ties to Silicon Valley figures with connections to Trump.
The company has raised approximately $2 billion in venture capital, with significant backing from Peter Thiel’s Founders Fund, which has invested in Ramp across seven funding rounds.
Thiel, a Trump supporter, has praised Ramp’s potential in AI and finance.
Other investors include Keith Rabois of Khosla Ventures, Joshua Kushner’s Thrive Capital, and 8VC, a firm linked to Musk’s allies.
The attention Ramp received from GSA leadership has raised concerns.
Scott Amey, general counsel at the Project on Government Oversight, criticized the process, arguing that federal contracting safeguards are designed to prevent awards based on personal connections.
A senior GSA official, speaking anonymously, noted that the high-level focus on Ramp before a public bid was unusual, suggesting favoritism. GSA, however, denied any improper practices, stating that its credit card reform efforts are transparent and aimed at addressing waste and fraud.
Ramp’s meetings with Gruenbaum, a former private equity executive with no prior government experience, coincided with GSA’s preparations to overhaul SmartPay, a program providing Visa and Mastercard charge cards for federal employees’ travel and small purchases.
Gruenbaum and acting GSA administrator Stephen Ehikian believe SmartPay has various inefficiencies, a view shared in Ramp’s blog post.
However, former GSA officials and budget experts from both parties dispute this, citing robust oversight and minimal fraud in the program.
A 2017 Government Accountability Office audit found little evidence of fraud, though it noted minor documentation issues.
The push for reform led to drastic measures, including a temporary $1 limit on government cards in February 2025, disrupting operations across agencies.
The proposed $25 million pilot program, announced after Ramp’s meetings with GSA, has drawn scrutiny for its rapid timeline and use of a special purchasing authority that reportedly bypasses standard controls.
Industry professonals question whether the process was actually fair / competitive, with some suggesting Ramp is the favored contender.
As GSA nears a decision on SmartPay’s future, Ramp’s ties to Trump’s inner circle and its outreach underscore the intersection of politics as well as federal contracting.
While the company’s technology may offer solutions, the process understandably raises certain questions about transparency and fairness in government procurement.