Trump and Musk Clash Over 'One Big Beautiful Bill Act'

In early June 2025, the alliance between President Donald Trump and tech billionaire Elon Musk unraveled into a public feud, centering on the "One Big Beautiful Bill Act" (OBBBA), a comprehensive tax and spending proposal. Musk, who had been a significant supporter and advisor in Trump's administration, criticized the bill as a "disgusting abomination," citing concerns over its fiscal irresponsibility and potential to increase the national deficit by $3.8 trillion over the next decade. (time.com)

The OBBBA, introduced in the House of Representatives on May 16, 2025, aims to extend major provisions of the 2017 Tax Cuts and Jobs Act, which are set to expire at the end of 2025. The bill includes significant reductions in non-military government spending, cuts to programs like the Supplemental Nutrition Assistance Program (SNAP) and Medicaid through stricter eligibility requirements, an additional $150 billion allocation for defense spending, and the scaling back of many clean-energy tax credits from the Inflation Reduction Act. It also proposes increasing the state and local tax (SALT) deduction cap from $10,000 to $40,000. The House narrowly passed the bill on May 22, 2025, with a 215–214–1 vote, largely along party lines. (en.wikipedia.org)

Musk's public denunciation of the OBBBA on June 3, 2025, marked a significant departure from his previous support of Trump's policies. He criticized the bill for its potential to add trillions to the national debt and for repealing clean energy and electric vehicle tax credits, which could adversely affect industries like Tesla. (time.com)

In response, President Trump expressed disappointment in Musk's stance and suggested that Musk's opposition was driven by self-interest, particularly due to the bill's removal of electric vehicle subsidies. Trump further threatened to cancel government contracts with Musk's companies, including Tesla and SpaceX, stating that such actions could save billions in the federal budget. (apnews.com)

The exchange escalated on social media, with Musk suggesting the formation of a new centrist political party and publicly supporting calls for Trump's impeachment. He also criticized Trump's trade policies, predicting an economic recession due to tariffs. (axios.com)

The feud has raised concerns within the Republican Party, with lawmakers urging reconciliation to prevent the dispute from hindering key legislative efforts, including the major tax and border spending bill. Prominent figures such as Senator Ted Cruz and Senator Mike Lee have advocated for unity, with Lee urging for a return of the Trump-Musk "bromance." Despite the personal nature of the conflict, some party leaders remain optimistic about eventual reconciliation. (apnews.com)

Economically, the threat to cancel government contracts with Musk's companies could have significant ramifications. Tesla and SpaceX have been integral to various government programs, and the potential loss of contracts raises questions about the future of these initiatives. Additionally, the feud has impacted financial markets, with shares of companies associated with both Trump and Musk experiencing volatility. (reuters.com)

This is not the first instance of tension between Trump and Musk. Their relationship has experienced fluctuations, with periods of collaboration and discord. However, the current feud is notably public and intense, underscoring the complexities of their alliance.

As the situation continues to unfold, the political and economic implications of the Trump-Musk feud remain uncertain. Observers are closely monitoring developments, particularly concerning the passage of the OBBBA and the stability of government programs reliant on Musk's technology.