Trump’s ‘Big Beautiful Bill’ passes litmus test as Musk’s ‘America Party’ threat looms—What’s next?

Senate Republicans narrowly passed President Donald Trump’s sweeping tax and spending legislation late Tuesday, overcoming internal resistance and external pressure to send the bill to the House for final approval. The 50-50 vote, broken by Vice President JD Vance, marked a significant and divisive victory for Trump, whose July 4 deadline remains firmly in place.

Three GOP senators — Thom Tillis, Susan Collins, and Rand Paul — voted against the bill along with all Democrats. “In the end we got the job done,” said Senate Majority Leader John Thune, who spent the weekend negotiating support amid mounting friction in the party, AP reported.

House faces tight deadline and deeper divides

The bill, once formally titled the “One Big Beautiful Bill Act” before Democrats filed an amendment to strip the name, now moves back to the House. Speaker Mike Johnson has scheduled a Wednesday vote and previously warned the Senate not to make changes to the House-approved version. However, several alterations were made in the Senate, especially concerning Medicaid, setting up potential resistance in the lower chamber.

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“The American people gave us a clear mandate, and after four years of Democrat failure, we intend to deliver without delay,” said the top four House GOP leaders following the Senate's vote.

The legislation proposes approximately $4.5 trillion in tax cuts over the next decade, including new deductions for tips, overtime, and older adults. It also includes $350 billion for defense and immigration initiatives. These measures are offset in part by reduced spending on Medicaid and food assistance. The Congressional Budget Office estimates the bill would add $3.3 trillion to the federal deficit over ten years.

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Elon Musk threatens new party over bill passage

Amid growing dissent, Tesla CEO Elon Musk issued a public threat to launch a new political party called the America Party if the bill becomes law. Musk called the legislation an “utterly insane and destructive bill” and took to X to share his stance.

If this insane spending bill passes, the America Party will be formed the next day.

Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.

— Elon Musk (@elonmusk) June 30, 2025

“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” Musk wrote.

Trump responded sharply through Truth Social. “Elon Musk may get more subsidy than any human being in history, by far. Without it, he’d have to close up shop and head back home to South Africa,” he said.

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Once allies, now rivals over fiscal vision

The clash between Trump and Musk represents a major shift in their relationship. Musk formerly led Trump’s Department of Government Efficiency (DOGE), a federal office aimed at reducing government spending. While DOGE claimed to have saved $190 billion, a report by the Partnership for Public Service suggests the abrupt spending cuts may have cost taxpayers $135 billion.

Their shared vision of slashing environmental regulations, social safety nets, and foreign aid has diverged over the contents of this bill. Musk now argues the legislation is fiscally irresponsible and punishes forward-looking industries.

He also took issue with cuts to electric vehicle subsidies. “This bill gives handouts to industries of the past while severely damaging industries of the future,” Musk said.

Trump, defending his position, posted, “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 … 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!!!”

Republican leaders sprint to lock in votes

As the House prepares for its vote, Republican leaders are working to avoid defections. With a 220 to 212 majority, the GOP can afford few breaks. Lawmakers from swing districts are raising red flags over Medicaid cuts, while fiscal conservatives are calling the bill a betrayal of Republican spending principles.

Some lawmakers have also complained that they have had little time to review the bill since the Senate changes were made. Much of the last-minute wrangling was aimed at securing votes from Alaska Senator Lisa Murkowski and other reluctant Republicans.

Trump urges party unity before July 4

Trump has made clear that he expects swift action. “I don’t want to go too crazy with cuts,” he said. “I don’t like cuts.”

The president’s urgency is aimed at turning the bill into a pre-Independence Day legislative victory. He continues to call on Republicans to push the bill across the finish line and meet what he views as a political mandate.

The bill would make permanent tax cuts passed during Trump’s first term and introduce new provisions promised during his campaign. In doing so, Republicans hope to deliver a major policy win as they look ahead to the 2026 midterms.

But with Elon Musk vowing political retribution, internal GOP differences exposed, and a narrow margin in the House, the bill’s final passage is anything but certain.

(With inputs from AP)