Update 04 July 2025: U.S. President Donald Trump signed the ‘One Big Beautiful Bill’ into law during a White House Independence Day ceremony. In marathon sessions, tthe Senate voted 51-50 (with Vice President J.D. Vance casting the deciding vote). The bill returned to the House of Representatives which faced in-party opposition to the final legislation. The remaining Republican hold-outs acquiesced to the party majority. Legislators voted 218-214, along party lines, in support of the spending bill.
President Donald Trump and Elon Musk have reignited their feud over the Senate’s spending bill, with Musk sharply criticizing the budget and Trump threatening to cut federal support for Musk’s ventures. This clash spotlights tensions between government spending priorities and private industry innovation.
What’s Happening & Why This Matters
Elon Musk calls the Senate’s spending proposal the “insane spending bill.” His frustration focuses on the bill’s potential to increase U.S. national debt dramatically. Musk warns that ballooning federal debt could jeopardize America’s future ambitions, including Mars exploration.
In response, Trump launched personal attacks on Musk, suggesting the billionaire might lose federal subsidies and “have to close up shop and head back home to South Africa.” The president even toyed with the idea of deporting Musk, who became a U.S. citizen in 2002 but was born in South Africa.
Trump accuses Musk of opposing his rollback of former President Biden’s 2021 executive order on electric vehicles (EVs) and emissions standards, which Trump calls an “EV mandate.” Musk, however, insists his objection is about fiscal responsibility rather than EV subsidies.
Trump’s budget bill could eliminate the EV tax credit, impacting Tesla, which has earned an estimated $11.4 billion in regulatory credits from federal and state programs. At the same time, SpaceX, Musk’s space company, relies on over $22 billion in federal funding from NASA and the Defense Department. Trump’s threats to cut SpaceX funding could hinder critical U.S. space programs.
Despite the harsh rhetoric, Musk appears cautious, tweeting that while it’s “so tempting to escalate,” he will refrain for now. Still, he warns that if the spending bill passes, he may form a new political party to offer an alternative to the current two-party system, emphasizing the need for a “voice” for the people.
Musk also vows to oppose any lawmakers supporting the bill, pledging to help them lose their primary elections next year.
The ongoing tension between Trump and Musk is part of the debate over government spending, innovation incentives, and America’s strategic goals in technology and space.
TF Summary: What’s Next
The clash between President Trump and Elon Musk over the Senate spending bill underscores deep divides in American politics and innovation policy. How this plays out will affect federal funding for space exploration and electric vehicle incentives.
Musk’s hints at a third party and political activism could change future U.S. elections. Meanwhile, Congress faces pressure to balance fiscal responsibility with supporting transformative technologies.
— Text-to-Speech (TTS) provided by gspeech