Musk dares Trump to cut 'ALL' his subsidies, threatens to float new party amid spat over US spending

Musk warned he will launch the America Party the day after the bill passes and target lawmakers who back it; Trump, in a thinly veiled threat, suggested cutting funding for SpaceX and Tesla.
This combination of pictures, created on June 05, 2025, shows tech billionaire Elon Musk (L) and US President Donald Trump (R) as the duo continue to spar publicly.
This combination of pictures, created on June 05, 2025, shows tech billionaire Elon Musk (L) and US President Donald Trump (R) as the duo continue to spar publicly. (FILE Photo | AFP)
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US President Donald Trump and tech billionaire Elon Musk clashed again on Monday over the proposed government spending bill, which Trump has dubbed as a "One Big Beautiful Bill." The exchange marked a fresh escalation in their bitter public feud, after Musk fell out with the US President over his objections to Trump’s flagship legislation.

As the bill makes its way through the US Senate, Elon sharpened his criticism, threatening to form a new political party and warning lawmakers against supporting it.

"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 on X.

With lawmakers set to vote on the bill, Musk accused Republicans of backing “debt slavery” and warned that his proposed political party would target those who support the legislation after campaigning to cut government spending.

"If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE," he wrote.

"VOX POPULI VOX DEI 80% voted for a new party," he claimed.

'No more rocket launches...'

However, the remarks drew a sharp rebuttal from Trump, who said Musk may have to "go back to South Africa" without the billions in government subsidies received by his companies.

"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 on Truth Social.

In a thinly veiled threat, Trump also suggested cutting government support for SpaceX and Tesla — the billionaire’s companies.

"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!!!," he added.

Musk later hit back on X, writing: "I am literally saying CUT IT ALL. Now."

Trump is hoping to seal his legacy with the "One Big Beautiful Bill," which would extend his expiring first-term tax cuts at a cost of $4.5 trillion and beef up border security.

But Republicans eyeing 2026 midterm congressional elections are divided over the package, which would strip health care from millions of the poorest Americans and add more than $3 trillion to the country's debt.

Musk has previously made his opinions about Trump's bill clear.

Days after he left the federal government last month with a laudatory celebration in the Oval Office, he blasted the bill as "pork-filled" and a "disgusting abomination."

When Trump clapped back to say he was disappointed with Musk, back-and-forth fighting erupted and quickly escalated. Musk suggested without evidence that Trump, who spent the first part of the year as one of his closest allies, was mentioned in files related to sex abuser Jeffrey Epstein.

Musk ultimately tried to make nice with the administration, saying he regretted some of his posts that "went too far."

Trump responded in kind in an interview with The New York Post, saying, "Things like that happen. I don't blame him for anything."

It's unclear how Musk's latest broadsides will influence the fragile peace he and the president had enjoyed in recent weeks.

Musk has spent recent weeks focused on his businesses, and his political influence has waned since he left the administration.

Still, the wealthy businessman poured hundreds of millions of dollars into Trump’s campaign in 2024, demonstrating the impact his money can have if he’s passionate enough about an issue or candidate to restart his political spending.

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