Billionaire businessman Elon Musk on Saturday announced that he had launched a new political party, named the America Party.

The announcement came two days after the US Congress passed Trump’s $4.5 trillion package of tax cuts and spending reductions, officially titled the “One, Big, Beautiful Bill”.

The bill ends federal subsidies for clean energy and electric vehicles to fund increases in military and border security spending. This move was reportedly one of the reasons for the falling-out between Trump and Musk, his former supporter.

On Saturday, Musk described the American Party as an alternative to the US’ two-party system, criticising both Democrats and Republicans for contributing to national debt through wasteful spending and corruption.

It remains unclear if the American Party has been registered with the country’s Election Commission yet, BBC reported.

New political parties are not required to officially register with the Federal Election Commission unless they raise or spend money “over certain thresholds in connection with a federal election”.

Notably, Musk is not eligible to run in the US presidential elections as he was born outside the country. He is yet to announce who will lead the new party, BBC reported.

On Friday, the US Independence Day, he conducted an online poll, asking if Americans wanted “independence from the two-party (some would say uniparty) system”.

The poll received more than 1.2 million responses. “By a factor of 2 to 1, you want a new political party and you shall have it,” Musk said in a social media post.

Musk had been a key Trump supporter since late 2024 and had appeared at several rallies in the run-up to the presidential elections. He contributed nearly $250 million to Trump’s re-election campaign, becoming his largest individual donor.

On January 20, the day Trump took office for his second term, he created the Department of Government Efficiency through an executive order and assigned Musk in charge of it.

The businessman resigned from the administration on May 29, criticising Trump’s “One, Big, Beautiful Bill”.

The legislation entails tax cuts of about $4.5 trillion that Trump had enacted during his first term, and additional tax breaks. However, the reduction in tax revenue is to be offset by cutbacks in social safety net programmes, such as the Medicaid health insurance programme and food stamps.

The bill also includes an investment of about $350 billion in national security and the deportation of undocumented migrants.

Musk was reportedly upset that the bill lacked support for clean energy and did not include subsidies for electric vehicles, such as those made by his company Tesla.

On July 1, Trump accused the businessman of being overly dependent on government aid and threatened that he would cut subsidies that Musk’s companies received. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa.”

Trump also threatened to have the Department of Government Efficiency investigate subsidies benefiting Musk’s companies, including Tesla, rocket company SpaceX and satellite provider Starlink.

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