Elon Musk Launches 'America Party' in Break from Trump Over Massive Spending Bill

Hadisur Rahman, JadeTimes Staff   

H. Rahman is a Jadetimes news reporter covering the USA

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Image Source: REUTERS/Nathan Howard/File Photo

Tech billionaire Elon Musk announced the creation of a new political party the America Party on Friday, signaling a dramatic rupture with former ally President Donald Trump and escalating tensions within the conservative political movement over government spending and national debt.

Musk unveiled the party on his social media platform X, just one day after Trump signed his sweeping legislative package dubbed the “Big Beautiful Bill” into law. Musk, once a close political confidant of Trump and a key supporter of Republican campaigns, condemned the bill as a fiscal disaster, accusing lawmakers of betraying their promises to limit government spending.

“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk posted on July 5. “Today, the America Party is formed to give you back your freedom.”

The new political initiative follows Musk’s vocal opposition to the Trump administration’s latest legislation, which includes expansive tax cuts, significant increases in military and immigration enforcement spending, and deep cuts to Medicaid. According to the Congressional Budget Office, the bill will add $3.4 trillion to the national debt over the next decade while raising the debt ceiling by $5 trillion.

Despite previously donating nearly $290 million to Trump and other Republican candidates, Musk has turned sharply critical in recent weeks, publicly threatening to fund primary challengers against GOP lawmakers who supported the bill.

“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 the bill was signed. “And they will lose their primary next year if it is the last thing I do on this Earth.”

Musk also launched a poll on X over the Fourth of July holiday, asking users whether they supported the creation of a new political party. The poll showed a 2-to-1 margin in favor, and by July 5, Musk declared the formation of the America Party, promising to act on the public’s response.

“You want a new political party and you shall have it!” he posted.

Though details remain limited, Musk suggested the party could target key Senate and House races in 2026, potentially positioning itself as a swing bloc in an increasingly polarized Congress. “One way to execute on this would be to laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts,” he wrote, adding that such a strategy could enable the party to influence or block major legislation.

The announcement caps weeks of behind-the-scenes friction between Musk and Trump. In May, Musk reportedly apologized to Trump for comments made during his dramatic resignation from the Department of Government Efficiency a cabinet-level position Musk held briefly early in Trump’s second term.

But Trump has also grown wary of Musk’s growing political influence and recently threatened to withdraw federal subsidies for Musk’s companies, including Tesla and SpaceX. Despite previously stating he would reduce his political involvement following a failed effort to sway a Wisconsin state Supreme Court race, Musk now appears to be re-entering the political arena with renewed ambition.

The America Party’s future remains uncertain, but its formation signals a growing rift among conservative power players and introduces a new political wildcard just ahead of the 2026 midterm elections.