Elon Musk issued his sharpest political threat since the 2024 election on Monday, declaring he would help launch a new political party if President Donald Trump's sweeping domestic spending bill becomes law. The billionaire's warning came just hours before the Senate advanced the legislation, which the Congressional Budget Office says would add $3.3 trillion to the national debt over a decade.
"If this insane spending bill passes, the America Party will be formed the next day," Musk wrote on X, the platform he owns. "Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE."
Musk's comments followed an earlier post targeting GOP lawmakers who supported the measure. "Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth," he wrote.
The Senate bill-dubbed the "Big, Beautiful Bill" by its backers-features expanded tax cuts, reduced spending restraints, and major revisions to health and entitlement programs. A CBO estimate released Sunday said the legislation would increase the deficit more than a comparable House version, which adds $2.4 trillion over ten years.
President Trump responded in a late-night Truth Social post, turning his attention to Musk's extensive reliance on government support. "Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa," Trump wrote. "Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!"
DOGE, the Department of Government Efficiency, was a Musk-led initiative before he resigned from his special advisory role in May. Trump's post signals a threat to intensify scrutiny on Tesla and SpaceX, which have received tens of billions of dollars in federal contracts and subsidies. According to a Washington Post analysis, Musk's companies have benefited from at least $38 billion in government aid.
The feud rattled financial markets. Shares of Tesla fell more than 6% in premarket trading Tuesday and were down 21% year-to-date. Treasury Secretary Scott Bessent, responding to Musk's outbursts, told Fox News, "I admire Elon's leadership on rockets. I will take care of the finances."
The political blowup caps weeks of tension between Musk and the Trump administration over the budget bill. Musk has previously slammed the legislation as a "disgusting abomination" and "debt slavery," accusing Republicans of betraying fiscal conservatives and undermining future-facing industries. The bill "gives handouts to industries of the past while severely damaging industries of the future," he wrote.
Trump defended the package, claiming it would unleash economic growth. He also reiterated his long-standing opposition to electric vehicle mandates. "Electric cars are fine, but not everyone should be forced to own one," Trump wrote. "Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate."
Despite stepping away from government service and saying he would cut back on political spending, Musk appears poised to re-engage. His America PAC last donated in March to GOP candidates in Florida, and he has now pledged to support challengers against GOP incumbents who back the bill. Musk had spent more than $275 million on Republican candidates during the 2024 cycle.
