Donald Trump threatens to cut billions in federal funding for Elon Musk’s companies after the tech mogul criticised his proposed legislation, escalating their public spat
[dropcap]D[/dropcap]onald Trump’s relationship with former adviser Elon Musk has dramatically soured, culminating in a public threat from the former President to cut “Billions and Billions” in federal funding to Musk’s various enterprises.
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The fiery exchange escalated on Thursday after Musk, once a key financial backer and the inspiration behind Trump’s Department of Government Efficiency, publicly criticised pending legislation containing many of the Republican’s core campaign pledges.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!” Trump declared on his Truth Social platform.
The thinly veiled threat marks a stark departure from the seemingly amicable terms the pair shared just months ago. As recently as March, Trump was seen buying a Tesla from Musk at the White House, a symbol of their then-strong alliance.
However, a recent Congressional Budget Office estimate that Trump’s “One Big Beautiful Bill Act” could add £1.9 trillion (approximately $2.4 trillion USD) to the federal debt over the next decade, coupled with Musk’s outspoken denunciation of the bill as wasteful, appears to have ignited the public spat.
Musk’s companies, including electric vehicle giant Tesla and space exploration firm SpaceX, maintain extensive ties with federal agencies.
These relationships encompass everything from Starlink internet services and costly space missions to electric vehicle subsidies.
The EV subsidies, in particular, are already a target within the Republican’s proposed bill, which aims to deliver on commitments to slash taxes on overtime, tips, and Social Security benefits.
The Tesla and SpaceX CEO has vociferously argued that the bill is fiscally irresponsible, stating, “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.”
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This sentiment directly clashes with Trump’s vision for the economy and has evidently triggered the former President’s public rebuke.
Oreoluwa is an accountant and a brand writer with a flair for journalism.
