Washington D.C. – A dramatic public rift has emerged between former allies Donald Trump and Elon Musk, culminating in Musk's announcement of a new political entity, the "America Party." The fallout stems from Musk's vehement opposition to President Trump's recently passed "big beautiful bill," a sweeping tax and spending package that has drawn criticism for its projected impact on the national debt.
The dispute escalated sharply in early June 2025, shortly after Musk concluded his advisory role heading the Department of Government Efficiency (DOGE) within the Trump administration. Musk, who had previously supported Trump, publicly denounced the legislation, calling it a "disgusting abomination" that would burden the nation with "crushingly unsustainable debt." He specifically cited estimates that the bill could add between $2.4 trillion and $3.3 trillion to the deficit over the next decade.
The "big beautiful bill" includes significant tax cuts, infrastructure spending, and stimulus measures, alongside proposed cuts to programs like Medicaid, food stamps, and green energy tax credits. Musk argued that the bill undermined his efforts at DOGE to reduce government spending. "I’m sorry, but I just can’t stand it anymore," Musk stated, criticizing the "massive, outrageous, pork-filled Congressional spending bill."
In response to the bill's passage, Musk threatened to form a new political party, a promise he fulfilled in early July 2025 with the establishment of the "America Party." He asserted that the country needs an alternative to the existing two-party system, stating, "Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE."
President Trump, in turn, defended his signature legislation and retaliated against Musk's criticism. Trump reportedly expressed disappointment in Musk and threatened to review the billions of dollars in government subsidies and contracts received by Musk's companies, including Tesla and SpaceX. This public spat marks a significant shift in the relationship between the two influential figures, who had previously maintained a close alliance.