Musk forms new political party after split with Trump over president's signature tax cuts law
Musk, once a ever-present ally to Trump as he headed up the slashing agency known as the Department of Government Efficiency, broke with the Republican president over his signature legislation, which was signed into law Friday.
As the bill made its way through Congress, Musk threatened to form the 'America Party' if 'this insane spending bill passes.'
'When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,' Musk said Saturday on X, the social media company he owns. 'Today, the America Party is formed to give you back your freedom.'
The formation of new political parties is not uncommon, but they typically struggle to pull any significant support away from the Republican and Democratic parties. But Musk, the world's richest man who spent at least $250 million supporting Trump in the 2024 election, could impact the 2026 elections determining control of Congress if he is willing to spend significant amounts of Monday.
His reignited feud with the president could also be costly for Musk, whose businesses rely on billions of dollars in government contracts and publicly traded company Tesla has taken a hit in the market.
It wasn't clear whether Musk had taken steps to formally create the new political party. Spokespeople for Musk and his political action committee, America PAC, didn't immediately comment Sunday.
As of Sunday morning, there were multiple political parties listed in the Federal Election Commission database that had been formed in the the hours since Musk's Saturday X post with versions of 'America Party' of 'DOGE' or 'X' in the name, or Musk listed among people affiliated with the entity.
But none appeared to be authentic, listing contacts for the organization as email addresses such as ' wentsnowboarding@yahoo.com ″ or untraceable Protonmail addresses.
Musk on Sunday spent the morning on X taking feedback from users about the party and indicated he'd use the party to get involved in the 2026 midterm elections.
Last month, he threatened to try to oust every member of Congress that voted for Trump's bill. Musk had called the tax breaks and spending cuts package a 'disgusting abomination," warning it would increase the federal deficit, among other critiques.
'The Republican Party has a clean sweep of the executive, legislative and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS,' Musk said Sunday on X.
His critiques of the bill and move to form a political party mark a reversal from May, when his time in the White House was winding down and the head of rocket company SpaceX and electric vehicle maker Tesla said he would spend 'a lot less' on politics in the future.
Treasury Secretary Scott Bessent, who clashed with Musk while he ran DOGE, said on CNN's "State of the Union" on Sunday that DOGE's 'principles' were popular but 'if you look at the polling, Elon was not.'
'I imagine that those board of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities,' he said.
___
Associated Press writer Meg Kinnard in Chapin, South Carolina, contributed to this report.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
24 minutes ago
- Business Upturn
With Debt Concerns Mounting, Resurfacing Presentation from Jim Rickards Suggests U.S. May Already Own What It Needs to Fund Trump's Economic Revival
Washington, D.C., July 06, 2025 (GLOBE NEWSWIRE) — As negotiations intensify over how to pay for President Trump's sweeping economic legislation—dubbed the 'Big Beautiful Bill' by those close to the administration—a released presentation from economic strategist Jim Rickards details a resource that could ensure this needed windfall does not come in the form of taxes or borrowing at all. Instead, Rickards discusses a hidden reserve of national wealth that has remained buried—both literally and politically—for generations. And now, for the first time in half a century, the doors may be opening. A Financial Resource Buried in the American West Rickards' presentation outlines the vast holdings of critical materials beneath federally owned land—resources essential for energy, defense, technology, and modern infrastructure. While the U.S. Geological Survey has long documented these deposits, Rickards says their potential value has never been fully recognized as a financial tool. According to the presentation, this resource base spans across every state, with extraordinary concentrations in key regions. '$516 billion is here in the Salton Sea area of California… $3.1 trillion is held in Nome, Alaska. And $7.35 trillion is here, in Midland, Texas' . He says that what's most remarkable isn't the size—but the fact that it's never been touched. 'The nature of this 'trust', as I call it, is such that politicians haven't been able to raid it… which has allowed it to grow untouched… for decades' . An Alternative to Debt, Hidden in Plain Sight Rather than relying on new bond issuances or foreign capital, Rickards proposes that America's next economic chapter be funded using what it already owns. 'We've had this rich 'endowment' right under our feet… yet for years, we refused to touch it'. He insists this is not a stimulus check or a new federal program. 'It's not some kind of government program like those COVID relief checks a few years back,' Rickards says. 'But it is a chance for the average American to become richer than they ever imagined'. Trump's Shift Toward Domestic Wealth The presentation positions Trump's current resource policies as a historic pivot. Rickards notes that, unlike past presidents who kept these resources off-limits, Trump is now unlocking them. 'Trump is re-opening our mineral-rich Federal Lands. And fast-tracking companies that could recover trillions of dollars' worth of resources, right here in America' . Even Trump's own comments suggest a new direction. 'There are certain areas where we have great, raw earth… and we're not allowed to use it because of the environment. I'm going to open them up,' Trump said. Projects Delayed for Generations Now Moving Forward Rickards points to specific projects—some sitting dormant for decades—as early signs of movement. 'The Resolution Copper Mine has been sitting for 29 years… Pebble Mine in Alaska has been stalled since 1990… and Thacker Pass Lithium Mine in Nevada has been blocked since 1978' . He says the barriers were never technical—they were political. 'For the past 50 years, fake-experts have strangled us from within the government,' he says. 'They tied us down with reams of regulation' . Now, that's changing. 'We know exactly where these minerals are. We know they're worth trillions of dollars. And now—for the first time in half a century—we can go get them' . A Moment of Reckoning Rickards says that this moment is not just about policy—it's about recognizing what America already has. 'America is anything BUT broke,' he writes. 'And if you understand what's bound to happen next? You could watch your own net worth soar in the years ahead' . He emphasizes that the resource isn't theoretical or abstract. It's real, verifiable, and already owned by the American public. 'It's not earmarked for any specific individual,' Rickards clarifies. 'I'm just trying to use terminology that will make the most sense to viewers' . About Jim Rickards Jim Rickards is a former advisor to the White House, CIA, Pentagon, and U.S. Treasury. He played a key role in the original Petrodollar Accord and has been involved in the federal response to numerous global crises. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Yahoo
31 minutes ago
- Yahoo
Trump hits out at Musk over plan to form new political party
US President Donald Trump has hit out at former close ally Elon Musk over the multi-billionaire's plan to launch a new political party. "I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a train wreck over the past five weeks," Trump posted on his Truth Social platform on Sunday. After teasing the idea for weeks, Musk posted on X over the weekend that he had set up the America Party to compete against the Republican and Democratic parties. The Tesla boss's announcement comes weeks after a dramatic falling out with Trump, who appointed Musk to lead the Department of Government Efficiency (Doge), which is tasked with identifying areas to cut federal spending. In his post, Trump also took aim at Musk's push for an "Electric Vehicle (EV) Mandate", saying it would have "forced everyone to buy an electric car in a short period of time." Trump's tax and spending plans - which he called his "big, beautiful bill" - ends tax breaks for electric vehicles.
USA Today
40 minutes ago
- USA Today
'Train wreck': Trump slams Musk after billionaire announces new political party
President Donald Trump took aim at Elon Musk after his former adviser announced the creation of new political party following staunch opposition to the president's signature legislation. "I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks," Trump wrote on social media July 6. "He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States." Musk announced the formation of the "America Party" on July 5, the day after Trump signed his mega-bill. The nonpartisan Congressional Budget Office projects the legislation will increase the national debt by $3.4 trillion, which Musk as lambasted. "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy," Musk wrote on his social media platform X on July 5. "Today, the America Party is formed to give you back your freedom." Trump criticized third parties in his July 6 post. "The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats," Trump wrote. Musk − the world's richest person with a worth of $405 billion, according to Forbes − spent nearly $290 million to help Trump and other Republicans get elected. In the opening months of Trump's presidency, Musk led the effort to slash federal agencies through the Department of Government Efficiency. The two have feuded in recent weeks as Musk strongly criticized Trump's "Big Beautiful Bill," which includes tax cuts, increased spending on immigration enforcement and the military and deep spending cuts in Medicaid. The bill increases the debt ceiling by $5 trillion. Musk has threatened to boost primary challengers against those who supported the bill, which included all but two Republicans in the House and three in the Senate. "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 wrote before Trump signed the legislation. "And they will lose their primary next year if it is the last thing I do on this Earth." Musk had taken steps to repair his strained relationship with the president ‒ including personally apologizing for insults he made during his combative exit from the Trump administration last month - before the new round of sparring.
