Spending Bill Fight Between Former Best Buds Musk and Trump Escalates, Hits Markets

Tensions between Donald Trump and Elon Musk have spilled into public view, shaking up political circles and financial markets. What started as a dispute over a spending bill has escalated into a personal feud—complete with accusations, threats, and economic consequences.

Musk, fresh off his departure from the Department of Government Efficiency (DOGE), has launched a full-scale attack on Trump’s trillion-dollar economic package. Using X, the platform he owns, Musk called on Americans to pressure lawmakers to stop what he described as reckless spending.

Good to know

• Bitcoin dropped from $105,700 to $100,900 as tensions intensified, currently trading at $102,950.
• Tesla shares fell 14% amid the political fallout.
• Over $621 million in crypto liquidations hit the market within four hours.

In a string of posts, Musk did not hold back. “Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL,” he wrote, urging followers to reject the legislation. He later added, “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.”

Musk argued the bill would add between $2.4 trillion and $5 trillion to the federal deficit. He claimed the spending levels are unsustainable and warned they would bring America closer to financial disaster. “A new spending bill should be drafted that doesn’t massively grow the deficit and increase the debt ceiling by 5 TRILLION DOLLARS,” he said.

The Congressional Budget Office echoed similar projections, stating that the national debt, currently sitting at $36.2 trillion, would balloon further if the bill moves forward.

Meanwhile, Trump pushed back in a statement during a meeting with German Chancellor Friedrich Merz, saying he was “very disappointed” in Musk’s comments. “Elon knew the inner workings of this bill. I’ve helped Elon a lot,” Trump said, suggesting Musk’s frustration stems from the removal of billions in electric vehicle subsidies.

Musk fired back by claiming Trump owes his political survival to him. “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk stated.

The rift widened even further after Musk made a bombshell claim—alleging the President is named in the Jeffrey Epstein files. Trump, on the other hand, responded by reportedly threatening to cut government contracts and subsidies linked to Musk’s companies.

Markets did not take the fight lightly. Tesla shares plunged 14%, and Bitcoin saw a sharp correction. According to Coinglass, over $621 million in crypto positions were liquidated in just four hours, as uncertainty rattled investors.

Behind the chaos is a battle over power, money, and control—one that could reshape how the public views both men, while sending shockwaves through Washington and Wall Street