Elon Musk Launches New Political Party Amid Controversy
Introduction of the America Party
On Saturday, billionaire entrepreneur Elon Musk revealed the formation of a new political entity called the America Party.
Context of the Announcement
This announcement followed the US Congress's recent approval of a $4.5 trillion tax cut and spending reduction package, known as the 'One, Big, Beautiful Bill,' which was championed by former President Trump.
The legislation eliminates federal support for clean energy and electric vehicles, reallocating those funds to bolster military and border security expenditures. This shift is believed to have contributed to a rift between Musk and Trump, who was once a supporter.
Critique of the Current Political System
Musk characterized the America Party as a response to the limitations of the existing two-party system, criticizing both the Democratic and Republican parties for their roles in escalating national debt through excessive spending and corruption.
As of now, it is uncertain whether the America Party has been officially registered with the Federal Election Commission, according to reports.
Registration and Eligibility
New political parties are not mandated to register with the Federal Election Commission unless they exceed certain financial thresholds related to federal elections.
It is important to note that Musk is ineligible to run for the presidency in the United States due to being born outside the country. He has not yet disclosed who will lead this new political party.
Public Engagement and Poll Results
On July 4, Musk conducted an online survey asking Americans if they desired 'independence from the two-party (some would say uniparty) system.' The poll garnered over 1.2 million responses, with Musk stating, 'By a factor of 2 to 1, you want a new political party and you shall have it.'
By a factor of 2 to 1, you want a new political party and you shall have it!
— Elon Musk (@elonmusk) July 5, 2025
When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.
Today, the America Party is formed to give you back your freedom. https://t.co/9K8AD04QQN
Musk's Political Journey
Musk has been a prominent supporter of Trump since late 2024, participating in various rallies leading up to the presidential elections and contributing nearly $250 million to Trump's re-election efforts, making him the largest individual donor.
On the day Trump was inaugurated for his second term, Musk was appointed to lead the newly established Department of Government Efficiency. However, he resigned from this position on May 29, expressing his discontent with Trump's 'One, Big, Beautiful Bill.'
Details of the Controversial Bill
This legislation includes approximately $4.5 trillion in tax reductions initiated during Trump's first term, along with additional tax incentives. However, these tax cuts are expected to be counterbalanced by reductions in social safety net programs, including Medicaid and food assistance.
Moreover, the bill allocates around $350 billion for national security and includes measures for the deportation of undocumented immigrants.
Musk reportedly expressed frustration over the bill's lack of provisions for clean energy and the absence of subsidies for electric vehicles, particularly those produced by his company, Tesla.
Trump's Response to Musk
On July 1, Trump accused Musk of being overly reliant on government support and threatened to withdraw subsidies benefiting Musk's enterprises, including Tesla, SpaceX, and Starlink.