Billionaire entrepreneur Elon Musk has officially declared the formation of a new political party, the America Party, following a sharp public rift with President Donald Trump over the administration’s recently passed tax and spending bill. The announcement, made on Saturday via Musk’s social media platform X, marks the most significant political shift yet by the former Trump ally and sets the stage for a potential shake-up ahead of the 2026 midterm elections.
“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 move follows weeks of warnings from Musk, who had threatened to create a new political force if Trump’s fiscal package passed through Congress. That bill—signed into law on Friday—includes sweeping tax cuts and spending reductions that Musk has repeatedly criticized as reckless and damaging to the economy.
The feud between Musk and Trump represents a dramatic unraveling of a once-close alliance. Musk previously held a senior position in the Trump administration as the head of the now-defunct Department of Government Efficiency, a controversial agency tasked with reducing federal bureaucracy. He also donated over $250 million to support Trump’s re-election in 2024, making him one of the campaign’s largest individual contributors.
But in recent months, tensions between the two have escalated. Musk had increasingly distanced himself from Republican leadership, criticizing both the content and the cost of the president’s proposed legislation. In June, he referred to the bill as a “disgusting abomination” and pledged to target every member of Congress who voted for it.
In a follow-up post on Sunday, Musk accused the Republican Party of betraying its promises of fiscal responsibility.
“The Republican Party has a clean sweep of the executive, legislative, and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS,” Musk wrote.
President Trump, speaking to reporters as he returned to Washington from his New Jersey residence on Sunday afternoon, dismissed Musk’s announcement as misguided.
“This is ridiculous,” Trump said. “The Democrats have lost their way, but it’s always been a two-party system. Starting a third party just adds to confusion. Three parties have never worked.”
While third-party movements have long been part of American politics, few have succeeded in challenging the dominance of the Republican and Democratic parties. However, Musk’s vast personal fortune, combined with his online influence and political visibility, could allow him to carve out a meaningful presence—especially if he chooses to fund congressional candidates or ballot initiatives in 2026.
Musk has not yet provided specific policy details or announced any candidates affiliated with the America Party. As of Sunday, no formal registration of the party had been confirmed. A search of the Federal Election Commission (FEC) database revealed several new entries referencing variations of “America Party,” “DOGE,” or “X”—terms often associated with Musk—but none appeared to be legitimate. Some filings listed joke or unverifiable email addresses, such as “wentsnowboarding@yahoo.com” and anonymous ProtonMail accounts.
Musk spent much of Sunday morning engaging with followers on X, soliciting ideas and feedback for the new party’s platform. He also indicated that he plans to use the party as a vehicle to influence the 2026 midterm elections, reiterating his earlier vow to challenge lawmakers who supported Trump’s tax plan.
The timing of Musk’s political re-entry is notable. In May, as his term in the White House wound down, the Tesla and SpaceX CEO suggested he would be retreating from political life to focus on his businesses. “I’ll be spending a lot less on politics going forward,” he said in a May interview. That promise appears to have been short-lived.
Musk’s return to politics has drawn concern from Washington and Wall Street alike. His companies—most notably Tesla and SpaceX—are heavily reliant on government contracts and regulatory approvals. News of the America Party’s formation triggered a brief dip in Tesla shares during early trading on Monday, reflecting investor anxiety about the potential implications of Musk’s latest move.
Treasury Secretary Scott Bessent, who frequently clashed with Musk during his time overseeing the Department of Government Efficiency, weighed in on the development during a Sunday appearance on CNN’s State of the Union.
“DOGE’s principles were popular, but if you look at the polling, Elon was not,” Bessent said, referring to Musk’s former agency. “I imagine that those board of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities.”
Despite the skepticism from political insiders and market analysts, Musk’s entry into the third-party political arena has generated significant online engagement. Whether the America Party will become a serious political force or fizzle out remains to be seen—but with Musk at the helm, the journey is unlikely to be quiet.
