President-elect Donald Trump effectively derailed bipartisan budget negotiations on Wednesday, rejecting the proposed legislation and accusing it of favoring Democrats. Billionaire Elon Musk, a close ally, played a key role in stirring opposition through social media, rallying Republican lawmakers and constituents against the bill.
In a joint statement with Vice President-elect JD Vance, Trump dismissed the measure and called for renewed negotiations. Musk, who is set to co-lead a task force on government efficiency with entrepreneur Vivek Ramaswamy, launched a social media campaign against the bill, labeling it an example of overspending. On his platform X, Musk threatened to support primary challenges against any lawmaker backing the legislation. Trump echoed the sentiment, amplifying Musk’s rallying cry, “Stop the steal of your tax dollars!”
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The budget deal’s collapse highlights Musk’s growing political clout. Rep. Andy Barr of Kentucky reported an influx of calls from constituents influenced by Musk’s posts, stating, “The people who elected us are listening to Elon Musk.”
Trump and Vance urged Republicans to tie the debt ceiling extension to the budget deal, arguing it was better addressed while President Joe Biden is still in office. “Let’s settle this debate now rather than during our administration,” they said.
The setback created uncertainty for House Speaker Mike Johnson, who negotiated the bill and faces a re-election challenge as Speaker. The slim Republican majority in the House increases the risk of renewed leadership disputes.
Lawmakers were blindsided by Trump’s opposition, with many attending year-end celebrations when the announcement was made. Senior Republican appropriator Rep. Steve Womack commented, “Nothing surprises me anymore.”
The Biden administration criticized Republicans for jeopardizing the bipartisan deal, warning of the potential harm to Americans. White House Press Secretary Karine Jean-Pierre urged Republicans to prioritize stability over politics.
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While Musk’s involvement thrilled some, like Rep. Dan Bishop of North Carolina, others expressed concern about his lack of political experience. Grover Norquist, a veteran of budget battles, praised Musk’s influence but questioned his expertise in legislative matters, saying, “He doesn’t know politics like he knows physics.”
Despite Musk amplifying some false claims about the bill, such as an alleged $3 billion allocation for a football stadium, he declared victory after the budget deal’s rejection, calling it “a good day for America.”
House Democratic Leader Hakeem Jeffries warned Republicans of the consequences of abandoning the agreement, stating, “You break the bipartisan agreement, you own the consequences.”