Musk Pushes for New Political Party in Response to Trump’s Controversial Legislation

Elon Musk, the billionaire CEO of Tesla and SpaceX, made headlines by proposing the formation of a new political party in the United States. This call for action came as he vehemently criticized a contentious piece of legislation known as the “One Big Beautiful Bill,” which has garnered support from President Donald Trump. According to reports, Musk labeled the bill a “disgusting disgrace,” asserting that it would add an unprecedented $5 trillion to the national debt, marking the largest increase in U.S. history.

In a statement shared on Platform X, Musk expressed his concerns about the bill’s financial implications: “The insane spending on this bill, which increases the debt ceiling by a record $5 trillion, makes it clear that we live in a one-party state. It’s time for a new political party that actually cares about the people.”

The controversial bill narrowly passed the U.S. House of Representatives in May 2025 by a single vote. It proposes to extend the tax cuts enacted in 2017 under Trump, while simultaneously boosting spending on defense and border security, and cutting funding for vital social programs such as Medicaid and SNAP. Congressional data from the CBO indicates that the bill could inflate the budget deficit by between $2.4 trillion and $3.8 trillion over the next decade, with the total potentially reaching $5 trillion when accounting for interest on the debt. These projections have raised alarms among fiscal conservatives like Senators Rand Paul and Mike Lee, who are advocating for more stringent spending cuts to address the growing debt crisis.

Musk, who recently departed from his role as the head of Trump’s Department of Government Effectiveness (DOGE), where he had pledged to slash $2 trillion from federal spending, criticized the bill for undermining his deficit reduction efforts. His brief tenure at DOGE saw only a modest 0.5% reduction in the overall budget, leading to backlash over his failure to meet ambitious targets. Moreover, Musk’s disagreements with Trump extend to the repeal of tax credits for electric vehicles, a move that directly impacts Tesla’s operations. Reports indicate that Musk has also expressed frustration over the administration’s refusal to support his nominee for NASA leadership and its inaction regarding conflicts of interest involving Starlink and FAA regulations.

Tensions between Musk and Trump escalated publicly on June 6, when Trump voiced his displeasure with Musk, accusing him of dissatisfaction regarding the removal of electric vehicle subsidies and threatening to terminate contracts with Musk’s companies, including SpaceX. Musk countered by claiming that without his $250 million in financial backing, Trump would not have secured victory in the 2024 election. This public discord, as noted by The Washington Post, underscores the growing schism within the Republican Party, where fiscal conservatives are increasingly wary of the bill’s potential ramifications on a national debt that has already soared to $36.2 trillion, according to CBO estimates.