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Elon Musk Threatens New “America Party” as $5.2 Trillion Debt Bill Fractures Trump Alliance

$5.2 Trillion Debt Bill Sparks Musk Revolt: "America Party" Threat Looms After Trump Split

Elon Musk has escalated his political war with former ally President Donald Trump, threatening to form a new “America Party” if Congress passes Trump’s $5.2 trillion deficit-expanding “One Big Beautiful Bill Act.” The billionaire’s ultimatum marks a stunning fracture between two of conservatism’s most influential figures and signals a potential realignment of U.S. political forces.

“If this insane spending bill passes, the America Party will be formed the next day,” Musk declared in a viral X post viewed 32 million times. “Our country needs an alternative to the Democrat-Republican uniparty so that the people have a VOICE”. The threat comes just weeks after Musk’s contentious departure as de facto head of Trump’s Department of Government Efficiency (DOGE), where he had promised to slash $2 trillion in federal waste but ultimately claimed just $175 billion in savings, a figure widely disputed by budget analysts.

Policy Divide Over “Insane” Spending

The 940-page legislation has become the lightning rod in this billionaires’ feud. According to the nonpartisan Committee for a Responsible Federal Budget, the bill would add $5.2 trillion to the national debt over the next decade through massive tax breaks and sweeping cuts to healthcare, food programs, and green energy initiatives. Musk lambasted it as a “disgusting abomination” that rewards special interests while exploding deficits.

Trump fired back with personal attacks, suggesting Musk’s companies survive only through government subsidies. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump posted on Truth Social. He further threatened to have DOGE “take a good, hard look” at Musk’s federal contracts. Musk responded defiantly: “I am saying CUT IT ALL. Now”.

America Party: Techno-Libertarian Vision Meets Political Reality

Musk’s proposed America Party appears to be conceived as a techno-populist alternative blending fiscal hawkishness with futurist ambitions. Policy analysts suggest it would champion:

  • Aggressive deficit reduction through government streamlining

  • Tech accelerationism favors AI, space exploration, and electric vehicles

  • Regulatory dismantling to spur innovation

  • Free speech absolutism modeled on Musk’s X platform management

“This would be a party for the 80% in the middle, neither hard-right nor hard-left,” said Dr. Alicia Reynolds, political scientist at Georgetown University. “But it’s success hinges on converting Musk’s digital army into electoral ground troops.”

Historical precedent remains daunting. Third parties face systemic barriers, including ballot access laws and the Electoral College’s winner-takes-all structure. Ross Perot captured 19% of the popular vote in 199,2, yet won zero electoral votes. More recently, Andrew Yang’s Forward Party has struggled for traction despite similar anti-establishment rhetoric.

“The last viable third-party presidential run was Teddy Roosevelt’s Bull Moose campaign in 1912, and it handed victory to Woodrow Wilson,” noted Mark Shanahan, University of Surrey political scientist. “An America Party would likely split the Republican vote, potentially creating a Democrat-dominated government”.

Musk’s Credibility Crisis

The Tesla CEO brings immense resources, he spent $250 million electing Republicans in 2024, but also a history of unmet promises. DOGE’s chaotic tenure saw mass layoffs, agency dismantling, and minimal verified savings despite Musk’s $2 trillion pledge. His gutting of USAID eliminated 83% of its humanitarian programs, including HIV/AIDS initiatives that researchers called “miraculous”.

“You don’t need many people to cut things,” said former 18F director Lindsay Young, whose government tech team was dismantled by DOGE. “But if you want to build things, that takes thought. It takes effort”.

Constitutionally barred from the presidency as a South African native, Musk could still deploy his $200 billion fortune and 175 million X followers toward primary challenges. He’s already endorsed Rep. Thomas Massie (R-KY), who voted against the bill, and threatened to unseat supporters: “They will lose their primary next year if it is the last thing I do”.


As the Senate races toward a July 4 deadline on the bill, Washington watches whether policy differences between America’s two most prominent conservatives will harden into permanent political division. Musk’s revolt represents more than personal pique; it tests whether tech capital can disrupt entrenched party structures that have dominated U.S. politics for 170 years. With deficits soaring and trust in institutions eroding, the America Party’s viability may depend less on Musk’s vision than on whether voters believe either major party can still govern responsibly.

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