KUALA LUMPUR – Elon Musk, once one of Donald Trump’s closest allies, has announced he is starting a new political party called the America Party, saying it is time for Americans to break free from the current two-party system.
The billionaire announced this on his social media platform X, just days after Trump signed a massive spending bill that Musk had strongly opposed. Previously, Musk had warned that if the bill passed, he would form a new party.
“When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” Musk wrote.
“Today, the America Party is formed to give you back your freedom.”
The bill in question – dubbed Trump’s “big, beautiful bill” – includes sweeping tax cuts and major spending commitments, and is projected to add over US$3 trillion to the US deficit over the next decade.
It passed the House by a narrow 218-214 vote and was signed into law by Trump on Friday, sparking renewed tensions with Musk.
Musk, who spent nearly US$280 million supporting Trump’s 2024 campaign, was previously appointed to head the Department of Government Efficiency – also nicknamed “Doge” – where he led deep budget cuts. However, he quit in May after clashing with Trump over the bill, which he described as “debt slavery”.
The feud escalated this week, with Trump threatening to cancel federal contracts with Musk’s companies and hinting at deportation, despite Musk having been a naturalised US citizen since 2002.
“Without subsidies, Elon would probably have to close up shop and head to South Africa,” Trump posted on his platform, Truth Social. He also said the government may “go back and eat Elon”.
Musk has yet to officially register the America Party with US election authorities, but said it would begin by backing candidates in a handful of House and Senate races during the 2026 midterms. His goal is to become the tie-breaking voice in a closely divided Congress, according to reports.
The world’s richest man said his party will focus on curbing wasteful government spending, though he has yet to lay out a full platform. He added that Americans are ready for a new option – pointing to a poll he posted on X, where two-thirds of more than a million users said they supported the idea of a new party. – July 6, 2025