Trump suggests DOGE look at Musk subsidies to save money as rift widens over spending bill

On July 1, US President Donald Trump recommended that the Department of Government Efficiency (DOGE) examine closely the possibility of reducing the subsidies provided to billionaire Elon Musk’s companies to conserve federal funds. This occurs just hours after Musk criticized almost every Republican currently in Congress who has indicated backing for Trump’s multi-trillion dollar tax proposal.

“Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” said Donald Trump on his Truth Social account.

In a social media post on X platform, he said the lawmakers should “hang their head in shame”. He also called for “a new political party that actually cares about the people”.

After weeks of relative silence following a feud with Trump over the legislation, Musk rejoined the debate on Saturday (June 28) as the Senate took up the package.

Musk’s opposition to the bill has created a divide in his relationship with Trump, indicating a significant change after the tech mogul invested nearly $300 million in Trump’s re-election and headed the administration’s contentious Department of Government Efficiency (DOGE), a federal cost-reduction effort. Musk, the wealthiest individual globally, contends that the law would significantly raise the national debt and eliminate the savings he claims to have gained with DOGE.

It is still uncertain how much influence Musk holds in Congress or what impact his views may have on the bill’s approval. However, Republicans have voiced worries that his fluctuating conflict with Trump might jeopardize their ability to maintain their majority in the 2026 midterm congressional elections. The divide has caused instability for Tesla, leading to drastic fluctuations in its stock prices that wiped out around $150 billion of its market capitalization, although it has since bounced back.