Elon Musk Threatens to Launch New Political Party Over Trump’s Spending Bill

Elon Musk has reignited political tensions in Washington, issuing his most pointed threat yet since the 2024 election. Despite previously stating he was stepping away from politics, the billionaire entrepreneur returned to the fray on Monday as the Senate prepared to vote on President Donald Trump’s sweeping tax-and-spending legislation, dubbed the “Big, Beautiful Bill.”

Taking to his platform X (formerly Twitter), Musk lashed out at members of Congress who supported the bill, accusing them of betraying promises to rein in government spending. “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!” Musk posted. “And they will lose their primary next year if it is the last thing I do on this Earth.”

Later that same day, Musk escalated his stance, warning that if the “insane spending bill passes,” he would launch a new political movement. “The America Party will be formed the next day,” he declared. “Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”

President Trump responded swiftly and aggressively on Truth Social, suggesting Musk’s opposition was hypocritical given the billions in government subsidies his companies have received. “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. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”

The threat to involve the Department of Government Efficiency (DOGE) — a Trump administration initiative — underscores the growing rift between the former allies. The two clashed earlier this month, when Musk publicly criticized Trump’s domestic policy agenda and hinted at forming a new political party. On Monday, Musk doubled down: “It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS, that we live in a one-party country – the PORKY PIG PARTY!! Time for a new political party that actually cares about the people.”

Musk’s vow to support primary challenges against Republican incumbents marks one of his most direct political threats since stepping down as a White House adviser. Despite saying last month he would scale back political spending, Musk has so far donated over $275 million to support Trump and other Republican candidates during the 2024 election cycle. His PAC, America PAC, last made contributions in March, backing Florida Republicans Randy Fine and Jimmy Patronis in special elections.

While Musk has long supported hardline immigration policies aligned with Trump, the new fiscal package appears to have driven a wedge between them. Musk has condemned the bill as “debt slavery,” arguing that it irresponsibly balloons the national deficit. A new report from the Congressional Budget Office estimates that the Senate version of the bill would add nearly $3.3 trillion to the deficit over the next decade—outpacing the $2.4 trillion impact projected from the House version.

Although the White House maintains the legislation will ultimately “slash deficits” and “unleash economic growth” through tax cuts and revenue-generating provisions, Musk has been vocal in criticizing its impact on forward-looking industries. He claims the bill “gives handouts to industries of the past while severely damaging industries of the future.”

He has denied that the elimination of electric vehicle and renewable energy subsidies is the reason for his opposition. However, he has repeatedly voiced concern that the bill undermines the very sectors his companies lead. Trump defended his administration’s position on Truth Social, reaffirming his opposition to electric vehicle mandates: “Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.”

With tensions rising and final Senate passage still pending, Musk’s threat to reshape the American political landscape with a new party looms over Capitol Hill—injecting fresh uncertainty into an already contentious legislative process.