Musk Fires Back As Trump Threatens Government Contracts/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump threatened Elon Musk’s government subsidies amid an escalating online feud. Musk responded defiantly, calling to eliminate all subsidies entirely. Their clash stems from disagreements over Trump’s costly “big, beautiful bill.”
Trump Musk Subsidies Clash Quick Looks
- Trump threatens to cut Musk’s government contracts and subsidies
- Musk responds on X, saying “CUT IT ALL”
- Feud fueled by differences over Trump’s spending bill
- Musk criticizes bill for adding $2.4 trillion to deficit
- Musk hints at forming new party if bill passes
- Trump cites Musk’s estimated $38 billion in government benefits
- DOGE agency could investigate Musk’s companies, Trump suggests
- Once allies, Trump and Musk now trade frequent online barbs
Deep Look
Trump Threatens Musk’s Government Subsidies As Feud Over Spending Bill Intensifies
WASHINGTON (AP) — The simmering feud between President Donald Trump and billionaire entrepreneur Elon Musk boiled over again late Monday, as Trump publicly threatened to strip Musk’s companies of lucrative government subsidies and contracts.
In a fiery post on his Truth Social platform, Trump blasted Musk’s reliance on federal support, suggesting the Tesla and SpaceX CEO could be forced to shut down operations without it.
“Elon may get more subsidies than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote.
Trump Hints At Government Crackdown On Musk’s Empire
Trump also floated the idea of using the DOGE initiative — the Department of Government Efficiency — an agency Musk helped establish — as a tool against him.
“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this?” Trump added.
According to a Washington Post estimate, Musk and his various enterprises have received at least $38 billion in government contracts, loans, subsidies, and tax credits over the years.
Musk Fires Back, Calls For Subsidy Cuts
Musk swiftly responded on his social media platform, X, dismissing Trump’s threats and taking a radical stance of his own.
“I am literally saying CUT IT ALL. Now,” Musk posted, signaling that he’d be willing to forgo government support entirely.
Feud Sparked By Massive Spending Bill
The clash is the latest chapter in a relationship that has veered from public camaraderie to bitter rivalry. Trump and Musk began the year praising each other, appearing together at events and engaging in mutual photo ops. But their alliance fractured last month over disagreements about government spending and fiscal policy.
The breaking point appears to be Trump’s so-called “big, beautiful bill,” a sweeping tax and spending package currently stalled in the Senate due to lack of full Republican support.
Musk has emerged as one of the bill’s fiercest critics, warning that it would dangerously expand the national debt. On Monday, Musk threatened political repercussions for lawmakers who support the legislation.
“He’s been clear he’ll back primary challengers against Republicans who vote for more debt,” said political analyst Megan Whitfield. “And he’s even floated creating a new political party if the bill goes through.”
Bill’s Financial Toll Looms Large
The nonpartisan Congressional Budget Office estimates that Trump’s bill would increase federal deficits by about $2.4 trillion over the next decade. Musk has cited that figure repeatedly in his attacks on the plan, arguing it betrays promises of fiscal restraint made by GOP leaders.
Meanwhile, Trump remains adamant that the legislation represents “perhaps the greatest and most important of its kind,” combining tax cuts with sweeping spending reductions — a message he’s pushing hard as Congress races toward a vote.
Unpredictable Allies Turn Foes
The Musk-Trump rift highlights the unpredictable alliances and rifts within the modern GOP and the conservative movement. Musk, once celebrated by conservatives as an icon of innovation and free speech, now finds himself in Trump’s crosshairs.
Whether Trump will act on his threats to target Musk’s federal support remains unclear. But the stakes are high for both men — and for the industries, from electric vehicles to aerospace, that rely heavily on government partnerships.
As their social media slugfest continues, one thing is certain: America’s two most outspoken billionaires show no signs of backing down.
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