Elon Musk launches ‘America Party’ after dramatic fallout with Trump over US spending bill

Billionaire Elon Musk says he is launching a new political party, dubbed the America Party, in a direct response to what he describes as the failure of both major US parties to curb reckless government spending.

“By a factor of 2 to 1, you want a new political party, and you shall have it!” Mr Musk wrote on Saturday on his social media platform X, referring to a poll he conducted among his followers.

Sixty-five per cent of respondents voted in favour of forming a new party.

“When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” Mr Musk said.

“Today, the America Party is formed to give you back your freedom.”

The Tesla and SpaceX CEO did not provide further details on the structure, platform, or leadership of the new party, nor did he indicate whether he intended to run for office himself.

The announcement follows a weeks-long public feud between Mr Musk and US President Donald Trump, centred on the passage of a controversial tax and spending bill, News.com.au reported.

The nearly 900-page legislation was narrowly approved by the Senate on Thursday and signed into law by Mr Trump on Friday, coinciding with the July 4 Independence Day holiday.

Mr Musk had previously lobbied Republican lawmakers to vote against the bill, describing it as “utterly insane and destructive.”

The legislation is expected to add an estimated $US3.4 trillion to the national deficit over the next decade.

“This is debt slavery,” Mr Musk wrote last week, warning that Republican members who supported the bill would face primary challenges, with his financial and political backing.

“They will lose their primary next year if it is the last thing I do on this Earth,” he posted.

“Time for a new political party that actually cares about the people.”

On Friday, ahead of the vote, Mr Musk posed a question to his 180 million followers on X: “Should we create the America Party?”

The poll drew millions of responses, with a significant majority in favour. He suggested the party could initially focus its efforts on two or three Senate races and up to ten House districts.

“Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people,” he wrote.

While Mr Musk’s political ambitions have long been a topic of speculation, this marks his most explicit move toward forming an organised political movement.

He previously served briefly in Trump’s Administration as head of the Department of Government Efficiency (DOGE), before exiting in May.

In response to Mr Musk’s criticism of the bill and his threat to launch a competing political party, Mr Trump suggested that the billionaire could face personal consequences.

Asked whether he would consider deporting Mr Musk, who was born in South Africa and became a US citizen in 2002.

Mr Trump said, “We’ll have to take a look.”

He also hinted that federal funding for Mr Musk’s companies could come under review.

The announcement of the America Party adds a new wildcard to the 2026 midterm election landscape and comes at a time of growing voter dissatisfaction with the traditional two-party system.