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

Elon Musk Issues His Boldest Political Ultimatum Yet Over Federal Spending

After briefly stepping back from politics, Elon Musk has reentered the fray in dramatic fashion. As the U.S. Senate debated President Donald Trump’s sweeping domestic policy legislation — dubbed the “Big, Beautiful Bill” — Musk took to X (formerly Twitter) to issue a stark warning to Congress and a broader threat to the American political landscape.

“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,” Musk wrote on X.

Just hours later, he escalated his position: “If the insane spending bill passes, the America Party will be formed the next day.”

The tech billionaire claims that the current two-party system — what he calls the “Democrat-Republican uniparty” — no longer represents the interests of the people. His proposed “America Party” would serve as a populist alternative aiming to restore fiscal discipline and reimagine the role of government spending.

President Trump quickly retaliated on his own platform, Truth Social, warning that Musk’s businesses may face scrutiny from the Department of Government Efficiency (DOGE).

“Elon may get more subsidy than any human being in history... Perhaps we should have DOGE take a good, hard look at this?” Trump posted. “BIG MONEY TO BE SAVED!!!”

A New Rift on the Right

The disagreement has fueled an increasingly public and hostile rift between Musk and Trump — once political allies. Musk, who donated over $275 million to pro-Trump and Republican campaigns in 2024, now seems poised to use his influence and capital to reshape the conservative landscape. He has promised to support primary challengers against sitting lawmakers who back the bill.

His criticism centers on the bill’s projected $5 trillion increase to the national debt and provisions that, he says, favor “industries of the past” at the expense of innovation, including electric vehicles and renewable energy — industries core to his companies.

Though Musk denies that the bill’s rollback of EV subsidies is the root of his frustration, he has repeatedly slammed the legislation as “debt slavery” and “anti-innovation.”

Trump Stands Firm

Trump, meanwhile, defended the bill and doubled down on his stance against EV mandates. “Electric cars are fine,” he wrote, “but not everyone should be forced to own one.”

Despite claims by the White House that the bill will “slash deficits” and “unleash economic growth,” the nonpartisan Congressional Budget Office projects the Senate version will add $3.3 trillion to the deficit over the next decade — nearly a trillion more than the House version.