Trump Allies Eye Startup for $700B Gov’t Payments

A tech startup with ties to prominent figures like JD Vance and Elon Musk is reportedly in talks with the Trump administration to potentially overhaul the government’s massive $700 billion payment system.

According to a ProPublica investigation, Ramp, a financial technology firm specializing in corporate credit cards and AI-driven spending analysis, has caught the eye of Trump appointees at the General Services Administration (GSA). The agency is considering tapping Ramp for a pilot program worth up to $25 million, raising concerns about potential conflicts of interest.

Rapid Ascent Raises Eyebrows

Founded just six years ago, Ramp boasts significant backing from Silicon Valley heavyweights, including Peter Thiel, a staunch Trump supporter. Thiel’s Founders Fund has invested heavily in Ramp. Other notable investors include firms linked to Jared Kushner and Elon Musk.

Critics argue that the attention Ramp is receiving from the GSA is unusual, especially given the company’s lack of prior federal contracts. Scott Amey of the Project on Government Oversight emphasized the need for impartial processes to ensure taxpayer interests are prioritized.

One GSA official, speaking anonymously, expressed concern that the high-level focus on Ramp could create the impression of a predetermined winner.

GSA Defends its Actions

The GSA has refuted any claims of unfair contracting practices, asserting that its credit card reform initiative is aimed at addressing waste and fraud.

Ramp did not respond to requests for comment.

Connections Spark Debate

Keith Rabois, a Ramp board member and early investor, is part of the “PayPal Mafia,” a group of influential tech leaders with ties to the Trump administration. Rabois hosted a fundraiser for Trump’s 2024 campaign and has close relationships with figures like Musk and Thiel.

Rabois stated that he has no involvement in any government-related initiatives for Ramp. Helberg, also associated with Ramp, echoed this sentiment.

SmartPay Under Scrutiny

The GSA’s interest in Ramp coincides with an upcoming decision on the SmartPay contract, currently held by U.S. Bank and Citibank. GSA officials believe the program is plagued by fraud and waste, an assessment disputed by budget experts and former GSA officials.

Sonny Hashmi, a former GSA commissioner, described SmartPay as a well-run program with robust oversight and fraud prevention measures already in place.

The potential overhaul of SmartPay could have significant implications for federal employees and the overall operation of government agencies. The situation warrants careful scrutiny to ensure fairness, transparency, and the best use of taxpayer dollars.

Pilot Program Details

The pilot program under consideration utilizes a special GSA purchasing authority, typically reserved for urgent acquisitions, potentially expediting the selection process.

• Key Players: Donald Trump, Elon Musk, JD Vance, Peter Thiel, Jared Kushner
• Agencies Involved: General Services Administration (GSA)
• Program: SmartPay government payments program
• Startup: Ramp

Read the full ProPublica report here.