US Senate struggling to pass US President Donald Trump's ‘one big, beautiful bill'
Senators were voting in a marathon session on Monday night (local time) known as a 'vote-a-rama,' featuring a series of amendments by Republicans and the minority Democrats, part of the arcane process Republicans are using to bypass Senate rules that normally require 60 of the chamber's 100 members to agree on legislation.
But after roughly 12 hours, it was still unclear how long the voting would last. Lawmakers said the process was being held up partly by the need to determine whether amendments complied with special budgetary rules.
Republicans can afford to lose no more than three votes in either chamber to pass a bill the Democrats are united in opposition to.
The nonpartisan Congressional Budget Office released its assessment on Sunday of the bill's hit to the $US36.2 trillion ($AU55.1 trillion) US debt pile.
The Senate version is estimated to cost $US3.3 trillion, $US800 billion more than the version passed last month in the House of Representatives.
Many Republicans dispute that claim, Democrats, meanwhile, hope the latest, eye-widening figure could stoke enough anxiety among fiscally minded conservatives to get them to buck their party, which controls both chambers of Congress.
'This bill, as we have said for months, steals people's healthcare, jacks up their electricity bill to pay for tax breaks for billionaires,' Democratic Senate Minority Leader Chuck Schumer said in a speech to the Senate.
Majority Leader of the US Senate, John Thune, countered that the tax cuts will help families and small businesses, as he defended spending reductions to social safety net programs.
He said Medicaid was growing at an unsustainable rate and there were some improvements and reforms to make it more efficient.
The Senate narrowly advanced the tax-cut, immigration, border and military spending bill in a procedural vote late on Saturday, voting 51-49 to open debate on the 940-page megabill.
Mr Trump wants the bill passed before the July 4 Independence Day holiday.
Many of the amendments are from Democrats proposing limiting cuts to Medicaid and abortion services but those and other Democratic amendments so far were rejected by the Republican majority.
Elon Musk, formerly appointed by Mr Trump to spearhead his government cost-cutting plan before the pair had a public falling-out in June over the budget bill, made a flurry of angry posts on X on Monday, threatening to target Republicans ahead of the 2026 mid-term election.
'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!,' Musk posted on X.
He also reiterated his interest in a new political party and accused lawmakers in both parties of belonging to the 'porky pig party,' a dig at government spending levels.
The Republican measure contains a $US5 trillion debt ceiling increase - $US1 trillion more than the House's bill - but failure to pass some version would present lawmakers with a serious deadline later this summer, when the Treasury Department could come close to exhausting its borrowing authority and thus risk a devastating default.
The debt limit increase has caused Senator Rand Paul of Kentucky to come out in opposition to the bill, joining fellow Republican Thom Tillis, who decried its cuts to Medicaid and clean energy initiatives.
According to the Congressional Budget Office, the Senate bill would result in about 11.8 million additional uninsured people, surpassing estimates for the House's version.
If the Senate succeeds in passing the bill, it will then go to the House, where members are also divided, with some angry about its cost and others worried about cuts to the Medicaid program.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
36 minutes ago
- Perth Now
US Senate passes Trump spending bill, sends to House
The Republican-controlled US Senate has passed President Donald Trump's tax and spending bill, signing off on a massive package that would enshrine many of his top domestic priorities into law while adding trillions of dollars to the country's debt. The bill now heads back to the House of Representatives for final approval. The House set debate and a vote for Wednesday for the bill. Trump has pushed lawmakers to get it to his desk to sign into law by the July 4 Independence Day holiday. Trump's Republicans have had to navigate a narrow path while shepherding the 940-page bill through a Congress that they control by the slimmest of margins. With Democrats lined up in opposition, Republicans have had only three votes to spare in both the House and Senate as they wrangled over specific tax breaks and healthcare policies that could reshape entire industries and leave millions of people uninsured. Yet they have managed to stay largely unified so far. Only three of the Senate's 53 Republicans joined with Democrats to vote against the package, which passed 51-50 after Vice President JD Vance cast the tie-breaking vote. Republican senators Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky voted against the bill. The vote came after an all-night debate in which Republicans grappled with the bill's price tag and its effect on the US healthcare system. It was not immediately clear what changes had been made to the massive package to resolve those concerns. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close as well. An initial version passed with only two votes to spare in May, and several Republicans in that chamber have said they do not support the version that has emerged from the Senate, which the non-partisan Congressional Budget Office estimates will add $US800 billion ($A1.2 trillion) more to the national debt than the House version. The House Freedom Caucus, a group of fiscal hawks who repeatedly threatened to withhold their support for the tax bill, is pushing for deeper spending cuts to reduce its total price tag. "That's not fiscal responsibility. It's not what we agreed to," the group said on Monday. A group of more traditional House Republicans, especially those who represent lower-income areas, object to the steeper Medicaid cuts in the Senate's plan. "I will not support a final bill that eliminates vital funding streams our hospitals rely on," Representative David Valadao, a California Republican, said during the weekend debate. The bill would make permanent Trump's 2017 business and personal income tax cuts, which are due to expire at the end of this year, and dole out new tax breaks for tipped income, overtime and seniors that he promised during the 2024 election. It provides tens of billions of dollars for Trump's immigration crackdown and would repeal many of his predecessor Joe Biden's green-energy incentives. The bill would also tighten eligibility for food and health safety net programs, which analysts say would effectively reduce income for poorer people who would have to pay for more of those costs. The CBO estimates the latest version of the bill would add $US3.3 trillion to the $US36.2 trillion debt pile.
The Advertiser
40 minutes ago
- The Advertiser
Wall Street slips amid Federal Reserve caution
The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
The Advertiser
41 minutes ago
- The Advertiser
Trump eyes Tesla subsidies, Musk says 'cut it all'
US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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 said in a Truth Social post. "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 said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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 said in a Truth Social post. "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 said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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 said in a Truth Social post. "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 said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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 said in a Truth Social post. "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 said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.
