Elon Musk Critiques Republican Settlement Budget
Elon Musk has launched a robust critique of the Republican settlement budget, urging his social media followers to pressure their representatives to “kill the bill.”
In a series of posts on X, he expressed his growing opposition to the proposed legislation, especially after having concluded his role as a “special government employee” in the Trump administration on May 28. His latest comments suggest a widening gap in his support for the “big beautiful bill” that has been promoted by the president.
“Call the senators, call the senators, bankrupt America is not OK! Kill the bill,” Musk declared on Wednesday.
His frustrations with the settlement bill, which recently passed the House on May 22, stem primarily from perceived funding cuts. Musk is particularly worried about the bill’s impact on electric vehicle (EV) tax credits, which Tesla stands to lose billions from if the legislation goes through as is.
The law would eliminate several tax credits, including the $7,500 federal credits for new EVs, $4,000 for used EVs, and $1,000 for the installation of Level 2 chargers. Additionally, it introduces a $250 yearly federal registration fee specifically for EV owners. If enacted, Tesla’s $11.4 billion in regulatory credits would sunset at the end of 2025, which significantly contributed to the company’s profitability in the previous quarter.
Right after the bill’s passage in the House, Musk expressed disappointment to CBS News, saying he was let down by the “massive spending bills” that would reduce the budget deficit while undermining prior efforts by the administration.
His frustration continued, as he labeled the budget as “unpleasant and hateful” in a later post.
Meanwhile, White House Press Secretary Caroline Leavitt responded on the same day, affirming, “I won’t change the president’s opinion. This is a big, beautiful bill.” House Speaker Mike Johnson also defended the legislation, remarking, “With all respect, my friend Iron is so badly wrong about the big, beautiful bill.”
Amid the negotiations, Deputy White House Chief of Staff Stephen Miller noted that cuts proposed by Elon Musk couldn’t be included in the package as they were classified as “discretionary spending” rather than “mandatory.”
In additional developments, Russ Vought, Director of the Office of Management and Budget, indicated that Trump is sending the first tranche of funding cuts, totaling $9.4 billion, to Congress. Trump’s goal is to finalize his settlement package by July 4, which may require significant adjustments before it is presented to the Senate, according to reports.
