Trump Escalates Feud with Elon Musk, Threatens Federal Scrutiny via DOGE
A Former Alliance Implodes Over Spending, Subsidies, and Political Power
President Donald Trump has reignited his public feud with Tesla and SpaceX CEO Elon Musk, vowing to unleash the very federal watchdog Musk helped create—the Department of Government Efficiency (DOGE)—to investigate the billions in subsidies his companies have received. The clash signals a dramatic escalation in a conflict that could reshape both national politics and government-industry relations.
From Ally to Adversary
Musk played a central role in Trump’s administration early in 2025, contributing more than $250 million to the president’s campaign and accepting a high-profile appointment to lead DOGE. The agency was created through Trump’s One Big Beautiful Bill Act, which aimed to slash government waste and downsize federal agencies.
As DOGE director, Musk oversaw the elimination of more than 120,000 government jobs, claiming to save the federal budget billions. But relations soured after Musk began criticizing the legislation he once supported, warning that the massive federal spending included in the final bill would increase the national debt and reverse the savings he claimed to have achieved.
Elon Musk stated on X: “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!”
Trump Fires Back on Truth Social
Trump responded in characteristic fashion, blasting Musk on Truth Social and suggesting that without government support, Musk would be out of business.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote. “Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!”
He also mocked Musk’s immigrant background, suggesting he would “close up shop and head back to South Africa” if federal subsidies were revoked.
Political Fallout and Musk’s New Party
The feud intensified as Musk unveiled plans for a new political movement, the America Party, which aims to primary pro-Trump Republicans in the 2026 elections. His goal: remove lawmakers who claimed to support fiscal conservatism, then voted for Trump’s spending bill. The Hill reported that House Republicans are growing uneasy with the Senate version of the bill ahead of a critical floor vote this Friday.
Musk has also attacked Trump’s energy priorities, criticizing fossil fuel subsidies while EV tax credits face cuts. The tension between the two now represents a rift within the GOP between traditional conservatives, corporate interests, and Trump’s populist-nationalist base.
What’s at Stake
Musk’s companies are deeply intertwined with federal funding:
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Tesla has received billions in EV tax credits and infrastructure incentives.
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SpaceX is a primary launch contractor for NASA and the Department of Defense.
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Starlink depends on U.S. government broadband subsidies for domestic and international expansion.
If Trump moves forward with a DOGE-led investigation into Musk’s government ties, it could jeopardize major contracts and send shockwaves through the U.S. tech and defense industries. Reuters recently detailed the depth of government support behind Musk’s ventures, underscoring the financial risk of any White House-driven crackdown.
No Signs of Backing Down
Neither man appears willing to yield. Political analyst Mark Shanahan noted that Trump sees the Big Beautiful Bill as his lasting economic legacy, while Musk views it as a betrayal of fiscal conservatism.
“Trump will fight back with threats of withdrawing contracts,” Shanahan told Newsweek. “Musk will fund challengers. This will get messier.”
Meanwhile, Democrats and independents are watching the civil war inside the Republican coalition with interest. As the House prepares for a vote, the GOP faces internal fracture and external pressure—courtesy of its most prominent billionaire backer turned political threat.
