Trump Threatens Musk with Subsidy Cuts via DOGE to Save Federal Funds

Trump Threatens Musk with Subsidy Cuts via DOGE to Save Federal Funds

Political Feud Heats Up Over ‘Big, Beautiful Bill’ as Musk Pushes Back with “CUT IT ALL” Call

Washington D.C. — In an escalating political showdown, U.S. President Donald Trump on Tuesday openly targeted Tesla and SpaceX CEO Elon Musk, suggesting that the Department of Government Efficiency (DOGE) should review—and potentially eliminate—the substantial federal subsidies supporting Musk’s ventures. The remarks mark a sharp turn in the already strained relationship between the two influential figures.

Posting on his social platform Truth Social, Trump accused Musk of receiving more government support than “any human being in history” and claimed that without those subsidies, “Elon would probably have to close up shop and head back home to South Africa.”

“No more rocket launches, satellites, or electric car production—and our country would save a fortune,” Trump wrote, pushing DOGE to investigate.

I am literally saying CUT IT ALL. Now.

— Elon Musk (@elonmusk) July 1, 2025

From Advisor to Adversary

The jab carries an added sting, as Musk previously served as an advisor to Trump and even led DOGE, the cost-cutting federal task force, until May. The shift from partnership to public rivalry comes on the heels of policy disagreements over Trump’s controversial spending legislation—dubbed the “Big, Beautiful Bill”—which includes significant cuts to EV incentives and green energy subsidies.

Musk, a vocal critic of the bill, fired back on X (formerly Twitter), saying:

“I am literally saying CUT IT ALL. Now.”

His terse response signals that Musk not only opposes selective cuts but is calling for a complete overhaul of the federal subsidy structure—possibly as a challenge to Trump’s approach and as an attempt to prove independence from government funding.

The Bill Behind the Battle

At the heart of the dispute is Trump’s sweeping spending and tax-cut bill, which has divided lawmakers and industrial leaders. While the President defends it as a measure to control federal expenditure and reduce what he calls “forced electrification,” Musk and other tech leaders view it as an attack on emerging industries.

“The bill gives handouts to industries of the past while severely damaging industries of the future,” Musk said last week.

Trump, in response, reiterated that he had always opposed the federal EV mandate and claimed his campaign consistently warned against “forcing everyone to drive electric cars.”

Despite once endorsing Musk’s presidency bid, Trump now appears committed to distancing himself from the billionaire, using Musk’s own criticism to justify subsidy cuts.

Political Fallout and New Party Threats

In a dramatic escalation, Musk warned lawmakers that those supporting the bill might “certainly lose their primary next year.” The entrepreneur even floated the idea of forming a new political outfit—the “America Party”—should the legislation pass Congress.

Meanwhile, Trump doubled down on Monday, accusing supportive lawmakers of betraying their 2024 campaign promises on budget discipline.

“They should hang their heads in shame!” Trump declared, adding pressure as the Senate entered marathon voting sessions.

The exchange is more than a clash of egos—it highlights a broader ideological divide over how to fund innovation, regulate industry, and balance economic growth with fiscal responsibility.

What DOGE’s Role Could Be

Although DOGE—Department of Government Efficiency—remains a symbolic and largely informal body under Trump’s administration, its mention is telling. It reflects Trump’s intent to make subsidy reduction a central issue heading into the 2026 midterms, and perhaps a tool to curb political adversaries under the banner of cost-efficiency.

Analysts suggest that actual cuts to subsidies could significantly impact companies like Tesla, SpaceX, and Neuralink, which have historically benefited from federal contracts, tax credits, and R&D incentives.

Conclusion

What began as a partnership has turned into a political tug-of-war between two of the most influential men in America. As President Trump eyes fiscal discipline and Elon Musk champions innovation, the future of U.S. subsidy policy—and possibly the future of green tech—hangs in the balance.

Whether DOGE becomes a symbolic tool or a legislative force, the fight over subsidies is now personal, political, and pivotal to the 2025-26 political narrative.