'To give you back your freedom': Elon Musk launches ‘America Party’ after rift with Trump - Is this the end of US two-party system?

Elon Musk on Saturday (June 5) announced the formation of a new political movement called the ‘America Party’, claiming it will help return freedom to the people and challenge the dominance of both major parties in the United States.

In a post on his social media platform X, Musk wrote, “Today, the America Party is formed to give you back your freedom.” He cited the results of a poll he posted on July 4, where 65.4% of over a million users voted in favour of forming a new party. “By a factor of 2 to 1, you want a new political party and you shall have it!” he said.

The announcement follows a public fallout between Musk and President Donald Trump, which intensified after Trump signed his sweeping ‘One Big Beautiful Bill’ into law on July 4. Musk had previously threatened to form a new political party if the bill passed, and now he’s acting on it.

The bill, a centrepiece of Trump’s second-term agenda, includes massive tax cuts and record funding for immigration enforcement. Musk, who once backed the plan and donated $277 million to Trump’s 2024 campaign, has since turned against it, criticising the bill for adding $3.3 trillion to the national debt.

Strategic plan to become a swing bloc in Congress

According to a series of posts made by Musk, the America Party won’t try to dominate Congress but instead plans to target just a few key races. Musk explained the party could focus on 2 or 3 Senate seats and 8 to 10 House districts, where slim margins could allow the new party to become a deciding vote on key laws.

“Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring they serve the true will of the people,” Musk wrote.

A party against both Democrats and Republicans

Musk has framed the America Party as a response to what he sees as a broken political system. “Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system!” he said in his July 4 poll post.

The idea appears to be gathering momentum among Musk’s supporters, with many embracing his call for a new political force in Washington that rejects both Republican excesses and Democratic inefficiencies.

Musk had been serving in Trump’s administration as head of the newly created Department of Government Efficiency (DOGE). Under his leadership, the department claimed to have saved $190 billion by slashing budgets and eliminating redundant agencies. However, a watchdog group later estimated the changes may have cost taxpayers $135 billion in disruptions and legal complications.

He resigned from DOGE in May, just weeks before Trump signed the spending bill.