Elon Musk Slams Trump-Backed Tax Bill as a Threat to His DOGE Strategies

In a recent interview, Elon Musk expressed disappointment with a substantial legislative package advanced by the House GOP. The measure, which encompasses tax cuts and increased funding for border initiatives, contradicts his efforts with the U.S. DOGE Service aimed at reducing government expenses.

This interaction highlights a rare divergence between Musk, a prominent supporter of Donald Trump’s 2024 campaign, and the former president who previously appointed him to a significant role. Musk’s critique surfaces as the GOP aims to pass a bill touted as “big” and “beautiful,” yet Musk raises concerns about its impact on federal budget deficits.

The hefty 1,100-page legislation, passed narrowly by the House, includes extensions of 2017 tax cuts and alterations to Medicaid and food assistance programs, reducing federal spending by nearly $1 trillion over the next decade. However, it also threatens to escalate the deficit by $2.3 trillion over the same period, according to the Congressional Budget Office.

Musk, who previously stated he could identify $2 trillion in potential federal budget cuts, calls the recent bill a setback for his goals with the DOGE initiative. “I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing,” he stated.

In response, Trump acknowledged his mixed feelings about the bill during a recent Oval Office appearance. While he commended House Speaker Mike Johnson and indicated support for tax cuts, he admitted dissatisfaction with specific aspects of the legislation. Nonetheless, the administration has indicated it intends to sign the bill into law.

Johnson attempted to reassure Musk through a post on X, recognizing the DOGE team’s efforts in exposing inefficiencies in government spending. He promised that future bills would address spending cuts outside the current reconciliation process.

Reports suggest that the administration plans to propose $9.4 billion in spending rescinds to House Republicans, as discussions around annual appropriations bills advance. However, accommodating the administration’s aggressive cuts has proved challenging for some lawmakers, particularly those overseeing departments like environmental programs.

As negotiations continue, it remains to be seen how the GOP will balance spending reforms while addressing concerns from leaders like Musk and managing internal party dynamics.