Elon Musk has openly criticized Donald Trump’s fiscal policies, particularly the significant budget deficit increase, which he attributes as the primary reason for his shift in stance towards the former president. In a thread on X, Musk admitted that the sharp rise in the budget deficit had prompted his change in position. He stated, “Increasing the deficit from an already insane $2 [trillion] under Biden to $2.5T. This will bankrupt the country,” highlighting his concern over the financial implications of Trump’s policies. Musk’s initial support for Trump has deteriorated amid disagreements over the substantial rise in the national debt.
Musk was one of the key Trump backers in his triumphant return to the White House last November, becoming a prominent figure in the newly established Department of Government Efficiency (DOGE), which aimed to cut budget costs and excessive federal spending. However, the Trump-Musk relationship has quickly soured as Musk stepped down from his government post last month. Since then, the tech billionaire has been sharply criticizing Trump’s flagship legislative agenda, which envisions massive increases in spending, cuts to social programs, and a sharp increase to the budget deficit limit.
This week, the “big, beautiful bill” narrowly passed the US Senate and House, and the controversial legislation was signed into law by Trump on July 4. Musk pledged to launch a political force of his own in case the spending bill makes it through. The billionaire apparently lived by his promise, announcing on Independence Day the creation of a new America Party, which would purportedly represent the “80% in the middle.” Musk has signaled his intention to make his new party an active political force by the midterm elections next year, suggesting he would focus on a handful of seats to take advantage of “the razor-thin legislative margins” and therefore have “the deciding vote on contentious laws.”
Musk and Trump have been locked in a recurring war of words, with the US president accusing his former ally of receiving more US government subsidies “than any human being in history,” threatening to set out DOGE against him, and even mulling a potential deportation of the South African-born entrepreneur. The tension between the two figures has escalated significantly, with Musk’s public criticism of Trump’s fiscal policies and his decision to form a new political party marking a major shift in the political landscape following Trump’s recent legislative actions.