Economy May 30, 2026 01:39 PM

Senior Adviser Oversaw Contracts Involving Firm He Held Stake In, Records Show

Investment in Thrive fund preceded sole-source award to Thrive-backed AI company and discussions over a separate bid, records and disclosures indicate

By Caleb Monroe

A senior administration adviser who managed federal purchasing matters disclosed an investment in a venture capital fund that later backed companies receiving attention from his office. Records, financial disclosures and people familiar with the matter show the adviser invested in March 2025 and was later connected to procurement activity involving Thrive-backed firms; he says he disclosed the holding and recused himself and provided ethics approval documents.

Senior Adviser Oversaw Contracts Involving Firm He Held Stake In, Records Show

Key Points

  • A senior adviser to the administration disclosed a March 2025 investment of $100,001 to $250,000 in a Thrive Capital fund and had oversight of federal procurement matters at the Federal Acquisition Service.
  • Ten months after the investment, the FAS awarded a $1.8 million sole-source contract to Databricks, a Thrive-backed AI company; the adviser was also reported to have been involved in discussions about a bid by Ramp, another Thrive portfolio company.
  • The adviser says he disclosed the holding, worked with ethics officials, recused himself from the affected contracts and shared documentation showing ethics approval; he left the administration on Friday.

A senior White House adviser who supervised federal procurement activity participated in and oversaw government contract matters that involved companies backed by a venture capital fund in which he held an investment, according to federal records, financial disclosures and people familiar with the matter.

The adviser, Josh Gruenbaum, a former DOGE recruit who led purchasing operations at the General Services Administration's Federal Acquisition Service (FAS), reported an investment of between $100,001 and $250,000 in a Thrive Capital fund in March 2025.

Ten months after that disclosure, the FAS issued a $1.8 million sole-source contract to Databricks, an artificial intelligence company backed by Thrive, the records show. Separately, those familiar with the matter said Gruenbaum had been involved in discussions connected to a bid by Ramp, another portfolio company of the same venture firm.

Gruenbaum has told officials he disclosed the investment, coordinated with ethics personnel and formally recused himself from matters involving the fund's portfolio companies. He provided documentation that he said showed ethics approval for the investment and the steps he took to remove himself from related contract decisions, according to the available records.

Those records and disclosures indicate a timeline in which a personal investment preceded subsequent government action involving firms supported by the same venture fund. The documents referenced by people familiar with the situation were used to substantiate his disclosure and the claimed recusal.

Friday was Gruenbaum's final day in the administration, the materials show.


Context and chronology

The sequence set out in public filings and the cited records is straightforward: an investment was recorded in March 2025; a sole-source contract to a Thrive-backed AI company followed approximately ten months later; and separate discussions involving another Thrive portfolio firm were reported during that period. Ethics paperwork provided by the adviser is included among the documents cited.

Official response

The adviser has stated that he followed required disclosure procedures and that ethics officials reviewed and approved his holding and the steps taken to avoid involvement in contract decisions related to the fund's portfolio. The records include documentation he shared to support that account.

Current status

The adviser departed the administration at the end of last week, bringing an end to his formal role overseeing the Federal Acquisition Service's purchasing operations.

Risks

  • Potential concerns about conflicts of interest because an adviser who invested in a venture fund was connected to procurement decisions involving firms backed by that fund - this affects government procurement and the technology sector.
  • Ambiguity about the scope of the adviser’s involvement in discussions related to a separate bid could raise questions about the adequacy of recusal procedures - this impacts federal acquisition oversight and fintech firms involved in bids.
  • The adviser’s departure from the administration leaves outstanding questions about any ongoing administrative reviews or how documented ethics approvals will be evaluated going forward - relevant to government contracting transparency.

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