Expense management startup Ramp is in the running to secure a $25 million charge card pilot program contract with the US General Services Administration (GSA), the company confirmed to TechCrunch on Thursday. The startup's technology, which has prevented billions of dollars in wasted spend across the economy, could soon be applied to the federal government's internal expense card program, dubbed SmartPay.

The SmartPay program is a massive $700 billion initiative, and Ramp's potential involvement could mark a significant milestone for the fintech startup. According to a report by Pro Publica, Ramp has been lobbying for the administration's attention since January, before President Trump was sworn in. This effort was highlighted in a blog post titled "The Efficiency Formula" by Ramp co-founder and CEO Eric Glyman and Ramp VC investor Kyle Harrison, which outlined ways to "eliminate inefficient spending" in the government.

The blog post seemed to be an appeal to Elon Musk's government agenda, which would be formally created a few days later as the Department of Government Efficiency. Ramp's ties to Musk's and Trump's world are notable, with investors including Peter Thiel's Founders Fund, Keith Rabois of Khosla Ventures, Thrive Capital, and Trump ally 8VC's Joe Lonsdale, among others.

When asked about the potential contract, Lindsay McKinley, head of communications at Ramp, emphasized that the startup is competing in a standard procurement process based on the strength of its solution. "Ramp's technology has prevented billions of dollars in wasted spend across the economy, and if chosen, we'll bring those same results to the American taxpayer," McKinley said.

While McKinley's statement highlights Ramp's money-saving capabilities, it's worth noting that the startup's technology is primarily designed for corporate expense management. Ramp offers features such as setting parameters to identify expenses that don't conform to policies, which could be applied to the federal government's existing policies for employee expenses.

The startup's involvement in the SmartPay pilot program came about after a former customer introduced Ramp to the GSA, following a public post on X shared by the Department of Government Efficiency (DOGE) on February 18. The post revealed that the US government currently has approximately 4.6 million active credit cards/accounts, processing around 90 million unique transactions for $40 billion of spend in FY24.

Ramp has since demonstrated its product and is now part of a standard RFI process, with no indication of whether it will be selected for the contract. The startup's valuation recently doubled to $13 billion after a $150 million secondary share sale, with over $1 billion in equity financing and $700 million in committed debt funding since its 2019 inception.

The potential partnership between Ramp and the US government could have significant implications for the fintech industry, as it would mark one of the first major collaborations between a government agency and a private expense management startup. If selected, Ramp's technology could help reduce government spending and increase efficiency, setting a precedent for future public-private partnerships in the space.

As the procurement process unfolds, it will be interesting to see whether Ramp's solution will be chosen for the SmartPay pilot program. Regardless of the outcome, the startup's involvement in the process highlights the growing importance of fintech innovation in addressing government inefficiencies and reducing waste.