Elon Musk Breaks from Trump, Forms America Party Over Tax Law Dispute
Tech billionaire Elon Musk has officially announced the creation of a new political group, the America Party, following a fallout with President Donald Trump over his administration’s divisive tax legislation.
Previously an influential supporter and ally of Trump, Musk publicly distanced himself after the president signed a sweeping tax cuts bill into law last Friday. Musk, known for his outspoken political views on X (formerly Twitter), had earlier threatened to launch an independent party if the legislation passed without significant changes.
When it comes to bankrupting our nation through waste and corruption, America operates as a one-party system, not a democracy,” Musk posted on his social platform Saturday. “Today, the America Party is born to restore your freedoms.
While the creation of independent parties isn’t new in American politics, they rarely manage to compete meaningfully with the dominant Republican and Democratic establishments. However, Musk — currently the world’s richest individual and having reportedly invested over $250 million backing Trump during the 2024 elections — might have the financial clout to influence the 2026 Congressional midterms.
ALSO READ : President Julius Maada Bio Takes Over as ECOWAS Chairman, Succeeding President Tinubu
The high-profile rift could prove risky for Musk, given his heavy reliance on federal contracts for his businesses, including SpaceX and Tesla. Moreover, Tesla’s market value has already experienced fluctuations amid the controversy.
As of Sunday morning, it remained unclear whether Elon Musk had taken formal legal steps to register his new party. Neither Elon Musk nor his political action committee, America PAC, provided immediate comments.
Meanwhile, the Federal Election Commission database reflected several new filings using variations of “America Party”, “DOGE”, and “X” — some listing Musk as an affiliate. However, none appeared credible, with many tied to unverifiable or anonymous email accounts.
Musk spent much of Sunday engaging with followers on X, seeking public input about the party’s direction and confirming intentions to get involved in the 2026 midterm races. Just last month, he vowed to campaign against every lawmaker who backed the tax cuts, calling the bill a “disgusting abomination” and warning it would balloon the national deficit.
The Republican Party had full control of the government and still chose to dramatically increase federal spending, driving the national debt up by a record FIVE TRILLION DOLLARS,” Musk said on X.
The move marks a stark shift from Musk’s May announcement, where he claimed he would scale back his involvement in politics as his tenure in the White House drew to a close.
Responding to Musk’s announcement, Treasury Secretary Scott Bessent commented on CNN’s “State of the Union”, stating that while Musk’s populist ideas had some public appeal, his personal polling numbers did not reflect that. “I suspect Tesla’s board wasn’t pleased with yesterday’s announcement and will pressure him to refocus on his core businesses,” Bessent added.
