Elon Musk has announced the creation of a new political party, the "America Party," following his fallout with President Donald Trump over the administration’s sweeping tax cuts.
Musk, who previously maintained close ties with Trump while leading the Department of Government Efficiency, publicly broke ranks after the president signed the controversial tax bill into law on Friday. During the bill’s passage through Congress, Musk had warned that he would launch the America Party if what he called “this insane spending bill” was approved.
“We don’t live in a democracy when it comes to bankrupting the country with waste and corruption — it’s a one-party system,” Musk posted Saturday on X, the social media platform he owns. “Today, the America Party is formed to return freedom to the people.”
President Trump dismissed Musk's announcement on Sunday while speaking to reporters before returning to Washington from his New Jersey residence. Calling the idea “ridiculous,” Trump emphasized his confidence in the Republican Party's success and criticized third-party efforts.
“The Democrats have lost their way, but America has always been a two-party system,” Trump said. “Starting a third party just creates confusion — history shows they never work.”
Though new political parties often struggle to gain traction against the Republican and Democratic establishments, Musk’s significant financial resources could shake up the 2026 congressional elections. The billionaire, who contributed at least $250 million to Trump's 2024 campaign, could influence key races if he invests heavily in his new party.
Trump signs tax and spending cut bill at White House
However, the move may carry risks for Musk, whose business empire depends on government contracts, while shares of Tesla — one of his flagship companies — have already been affected by recent political controversies.
It remains unclear whether Musk has formally completed the legal process to establish the America Party. On Sunday, reporters found several new entities registered with the Federal Election Commission containing variations of “America Party,” “DOGE,” or “X,” some listing Musk's name.
Throughout Sunday, Musk actively engaged with X users, seeking feedback on the party's direction and hinting at plans to participate in the 2026 midterm elections.