Trump Adviser’s Investment in Thrive Capital Draws Scrutiny Over Federal Contracts

A senior adviser in President Donald Trump’s administration is facing scrutiny after a report revealed his involvement in government contract matters connected to companies backed by a venture capital firm in which he held a financial stake.

According to a Wall Street Journal report published Saturday, Josh Gruenbaum, who recently concluded his role at the General Services Administration’s Federal Acquisition Service (FAS), invested between $100,001 and $250,000 in a Thrive Capital fund in March 2025. The report cited federal records, financial disclosures, and sources familiar with the matter.

The investment has drawn attention because Thrive Capital backs several technology companies that later became involved in federal contracting activities. Approximately ten months after Gruenbaum’s investment, Databricks, an artificial intelligence company supported by Thrive Capital, received a $1.8 million sole-source federal contract through the FAS.

The Wall Street Journal also reported that Gruenbaum participated in discussions related to a separate government bid involving Ramp, a fintech company that is also part of Thrive Capital’s investment portfolio. The developments have raised questions about potential conflicts of interest and ethics compliance within federal procurement operations.

Gruenbaum denied any wrongdoing and told the newspaper that he followed all required ethics procedures. He stated that the investment was properly disclosed to relevant officials and that he worked closely with ethics advisers to ensure compliance with government regulations. According to the report, he also provided documentation showing he received ethics approval for the investment and recused himself from matters involving the contracts in question.

The case highlights ongoing concerns about transparency, ethics oversight, and financial interests among government officials involved in federal contracting decisions. As artificial intelligence and fintech companies continue to secure government business, scrutiny over potential conflicts of interest remains a significant issue for policymakers and watchdog groups.

Friday marked Gruenbaum’s final day serving in the Trump administration, according to the Wall Street Journal report.