Musk Slams Trump’s Plan as ‘Catastrophic,’ Says It Threatens Jobs and Growth
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| Photo credit _CNN |
Washington, D.C. In a fiery escalation of tensions with President Donald Trump, Tesla and SpaceX CEO Elon Musk unleashed a scathing attack on the administration’s flagship legislative proposal, the “One Big Beautiful Bill Act,” on June 28, 2025, labeling it “utterly insane and destructive.”
Musk’s blistering critique, posted on his social media platform X, warns that the bill narrowly advanced by a 51-49 Senate vote threatens to destroy millions of jobs and inflict immense strategic harm on the United States.
As Senate Republicans race to meet Trump’s self-imposed July 4 deadline for passage, Musk’s high-profile opposition has ignited a firestorm of debate, exposing deep rifts within the GOP’s coalition and raising questions about the economic fallout of the controversial legislation.
A Clash of Titans: Musk vs. Trump
The public feud between Musk and Trump, once close allies, marks a dramatic shift in their relationship, which had been strained earlier this month when Musk stepped down as head of the Department of Government Efficiency (DOGE). Musk’s departure followed his initial criticism of the House version of the bill, which he called disappointing for undermining DOGE’s cost-cutting efforts.
On June 28, as the Senate prepared to debate the 940-page revised bill, Musk doubled down, posting on X: The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country! Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future.
Musk’s remarks, amplified by his massive online following, have reignited tensions with the Trump administration, which has championed the bill as a cornerstone of its America First agenda.
In a surprising twist, Trump responded diplomatically in a Fox News interview on June 29, calling Musk a wonderful guy despite the harsh critique. However, sources indicate that Trump privately threatened to cut federal subsidies and contracts to Musk’s companies, including Tesla and SpaceX, a move that sent Tesla shares tumbling 14% after Musk’s initial attacks.
The ‘Big Beautiful Bill’: What’s at Stake?
The One Big Beautiful Bill Act is a sweeping tax-and-spending package that seeks to make permanent the 2017 Tax Cuts and Jobs Act, set to expire in 2025, while introducing new tax breaks for tips, overtime wages, and certain auto loan interest.
It also allocates billions for border security, including funding for 1 million annual deportations, and boosts military spending. To offset its estimated $3.3 trillion addition to the federal deficit over the next decade, the bill slashes funding for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), sparking outrage from Democrats and some Republican moderates.
The Congressional Budget Office (CBO) projects that the Senate version of the bill would increase the national debt by $3.3 trillion from 2025 to 2034, nearly $1 trillion more than the House-passed version. Alarmingly, the CBO estimates that 11.8 million Americans could lose health insurance coverage by 2034 due to the Medicaid cuts, a figure that has galvanized opposition.
The bill also raises taxes on clean energy sectors solar, battery, wind, geothermal, and nuclear projects while rolling back Biden-era green energy tax credits, including the $7,500 electric vehicle incentive. These provisions directly threaten Tesla’s energy business, prompting Musk’s vocal resistance.
Musk, a leading figure in renewable energy and innovation, argues that the bill prioritizes outdated industries like fossil fuels over industries of the future like clean tech, which he claims are critical to U.S. economic competitiveness.
This bill raises the debt ceiling by $5 TRILLION, the biggest increase in history, putting America in the fast lane to debt slavery, Musk posted on X, echoing concerns from fiscal conservatives like Senator Rand Paul (R-Ky.), who also voted against advancing the bill.
Senate Showdown and Political Fallout
The Senate’s 51-49 vote on June 28 to advance the bill was a procedural victory for Republicans, but it exposed deep divisions within the party. Senators Thom Tillis (R-N.C.) and Rand Paul opposed the motion, with Tillis citing the bill’s devastating impact on North Carolina’s Medicaid-dependent communities and Paul decrying the $5 trillion debt ceiling increase.
Senator Ron Johnson (R-Wis.) initially voted no but switched to yes after securing a promise for a vote on an amendment to reduce federal Medicaid funding. Vice President JD Vance was prepared to break a potential tie, but Johnson’s flip rendered it unnecessary.
Republican moderates like Senators Lisa Murkowski (R-Alaska) and Susan Collins (R-Maine) extracted concessions, including exemptions for Alaska and Hawaii from new SNAP requirements and increased funding for rural hospitals.
However, the bill’s passage is far from assured. The Senate now faces a vote-a-rama, where senators can propose unlimited amendments, a process expected to stretch into Monday. Democrats, led by Minority Leader Chuck Schumer (D-N.Y.), have vowed to use all 10 hours of allotted debate time, forcing a full reading of the bill to delay proceedings.
Musk’s outspoken criticism has amplified the bill’s unpopularity, with polls suggesting it could be political suicide for the Republican Party. In a June 28 X post, Musk shared a user’s comment that the bill is akin to shooting ourselves in the chest, adding, Yes, utter madness! The tech billionaire’s warnings resonate with a growing chorus of critics, including economists who argue that the bill’s budget assumptions rely on unrealistic growth projections.
Economic and Industry Impacts
Musk’s concerns about job losses center on the bill’s impact on emerging industries. Tesla, a leader in electric vehicles and battery storage, stands to lose significantly from the elimination of clean energy tax credits. The bill’s provisions raising taxes on solar, battery, wind, geothermal, and nuclear projects could stifle innovation at a time when global demand for clean tech is surging. This bill could cripple innovation just as global demand for clean tech is growing, Musk warned, highlighting the strategic disadvantage it poses for the U.S. in the global economy.
The CBO’s analysis supports Musk’s fears, projecting that the bill’s combination of tax cuts and spending reductions could shrink the economy, particularly if paired with Trump’s proposed tariffs. Earlier this month, Musk warned that the bill could trigger a recession, a claim that has gained traction among analysts. The legislation’s $5 trillion debt ceiling increase has also drawn fire from fiscal hawks, who argue it undermines the GOP’s promise of fiscal responsibility.
On the other side, supporters like the U.S. Chamber of Commerce and the American Farm Bureau Federation praise the bill’s tax relief for small businesses and farmers. Uber CEO Dara Khosrowshahi lauded the No Tax on Tips provision, calling it a boon for gig workers. However, Musk’s influence as a tech titan and his warnings about job losses have shifted the narrative, putting pressure on Republican senators to reconsider the bill’s priorities.
Trump’s Response and the Path Forward
Despite Musk’s attacks, Trump has remained publicly conciliatory, perhaps wary of alienating a key figure in American innovation. In his Fox News interview, Trump avoided direct criticism, saying, Elon’s a wonderful guy, but we’re focused on making America great again. Behind closed doors, however, Trump reportedly considered retaliating by targeting Musk’s companies, a move that could further escalate their feud.
The bill’s fate now hinges on the Senate’s ability to navigate the vote-a-rama and reconcile differences with the House, where Speaker Mike Johnson (R-La.) faces a precarious 215-214 majority. House Freedom Caucus members have already signaled opposition to the Senate’s deeper Medicaid cuts, complicating the path to a final vote. If amendments significantly alter the bill, it could delay passage beyond Trump’s July 4 deadline, a symbolic target tied to his vision of delivering a great victory for America.
A Nation Divided
Musk’s high-profile intervention has thrust the Big Beautiful Bill into the national spotlight, framing it as a battle between short-term political wins and long-term economic stability. His warnings about job losses, innovation setbacks, and a ballooning deficit resonate with a public increasingly skeptical of Washington’s fiscal priorities.
Posts on X reflect growing unease, with users debating the bill’s merits and Musk’s credibility as a critic. One user wrote, Musk is right this bill is a disaster for the future, while another countered, Trump’s delivering for workers, not billionaires like Musk.
As the Senate debates the bill’s future, the clash between Musk and Trump underscores deeper tensions within the Republican Party and the nation at large. The Big Beautiful Bill promises tax relief and border security but at the cost of social programs and clean energy investments.
Whether it will deliver Trump’s vision of a revitalized America or, as Musk warns, lead to economic ruin remains to be seen. For now, the nation watches as two of its most powerful figures battle over the future of the economy, with the July 4 deadline looming large.
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