Elon Musk slams Trump’s ‘Big, Beautiful Bill’ as Senate vote nears

Elon Musk launched a fresh wave of criticism against President Donald Trump’s sweeping tax and spending legislation on June 28, calling the Senate’s revised 940-page bill “utterly insane and destructive”. The Tesla and SpaceX CEO warned that the legislation would lead to “immense strategic harm” and cost millions of American jobs. “The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!” Musk wrote on X. “It gives handouts to industries of the past while severely damaging industries of the future.”

The Senate is working through the weekend in a race against time, as Republicans aim to pass the bill before Trump’s self-imposed Independence Day deadline. The newly released 940-page draft includes significant changes from the House version passed last month by a single vote. In a bid to satisfy budget rules and shore up wavering GOP (Grand Old Party) support, the updated bill features steeper cuts to Medicaid, reworked tax provisions, and modified timelines for phasing out clean energy subsidies.

A central criticism of the bill, including from some Republicans, is its projected $3 trillion increase to the federal deficit over the next decade, as estimated by the Congressional Budget Office (CBO). While the GOP holds a majority in both chambers, the bill has sparked internal divisions, particularly over its deep spending cuts and subsidies for fossil fuel sectors, including a new credit for coal used in steel production.

Musk’s energy interests in the crosshairs

Musk’s criticism highlights the bill’s potential blow to clean energy sectors. The legislation includes provisions that would raise taxes on solar, battery, wind, geothermal, and nuclear energy projects, areas central to Tesla’s energy business. He warned that the bill would undermine America’s future industries while artificially propping up outdated sectors like coal.

One controversial inclusion: a subsidy for coal used in steel production. Simultaneously, the Senate version proposes a gradual rollback of clean energy tax credits, offering reduced incentives through 2027 before eliminating them entirely in 2028.

Tesla produces battery storage systems and solar photovoltaic solutions, and Musk warned the bill could cripple innovation just as global demand for clean tech is growing. “This is political suicide for the Republican Party,” he later added, warning of long-term consequences.

A feud rekindled

Musk’s remarks come just weeks after a public fallout with President Trump, sparked by the tech magnate’s earlier denunciation of the bill as a “disgusting abomination”. Musk, a major GOP donor who once led the now-defunct Department of Government Efficiency (DOGE), briefly reconciled with Trump after walking back some of his harsher posts.

However, the comments suggest renewed tensions. Musk previously threatened to withhold political donations and called out lawmakers who supported the legislation, accusing them of betraying the American public.

In a particularly heated exchange earlier this month, Musk insinuated Trump was connected to disgraced financier Jeffrey Epstein, an allegation made without evidence. While both parties had attempted to move past the dispute, it remains unclear whether Musk’s latest broadside will rupture the uneasy peace.

What else is inside the new draft?

The latest version includes a swathe of policy changes designed to appease various GOP factions:

Social security tax breaks: The Senate bill enhances tax deductions for seniors, raising the amount from $4,000 (in the House version) to $6,000. However, these benefits taper off for higher-income individuals.

Medicaid overhaul: The Senate draft imposes the strictest-ever work requirements on enrollees, including adults with children aged 15 and over. It also reduces provider taxes from 6 per cent to 3.5 per cent by 2031, although a $25 billion rural hospital fund was added to placate critics.

SNAP restrictions: The Supplemental Nutrition Assistance Program (food stamps) would see new work requirements for childless, able-bodied adults, and states would be required to contribute more funding.

Overtime and tips tax relief: The Senate version retains the House’s promise to eliminate taxes on overtime pay and tips—a key Trump campaign pledge—but phases out the benefit for individuals earning over $150,000.

Child tax credit: The Senate proposes a permanent increase to $2,200 (versus $2,500 in the House bill) and lowers eligibility thresholds by requiring only one parent to have a Social Security number.

State and local tax (SALT) cap: To win over moderates, the cap on SALT deductions would rise from $10,000 to $40,000 for joint filers under $500,000 income, but only until 2030.

Activist backlash

Tesla shares fell 14 per cent following Musk’s initial attacks on the bill, as Trump hinted at reconsidering government contracts involving Musk’s companies. Meanwhile, activist groups organised “anti-celebration” protests on Musk’s 54th birthday, condemning his links to the Trump administration and far-right political elements in Europe.

Democrats, though largely sidelined in the process, have lambasted the bill. House Minority Leader Hakeem Jeffries labelled it a “reckless, regressive and reprehensible GOP tax scam” and vowed to use it as campaign fodder in next year’s midterms.

Trump, meanwhile, has taken to social media to push for swift passage: “It’s time for our friends in the United States Senate to get to work and send this bill to my desk as soon as possible!”