Washington. Elon Musk says he is following through on his threat to form a new political party after a rift with President Donald Trump, announcing the creation of the “America Party” in response to Trump’s sweeping tax cuts law.

Musk, once a close ally of Trump while leading the Department of Government Efficiency, broke with the Republican president over the legislation, which was signed into law Friday.

As the bill moved through Congress, Musk warned he would form the “America Party” if the “insane spending bill” passed.

“When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” Musk posted Saturday on X, the social media platform he owns. “Today, the America Party is formed to give you back your freedom.”

Asked about Musk’s move on Sunday before returning to Washington from his New Jersey home, Trump dismissed the effort as “ridiculous” and highlighted his “tremendous success with the Republican Party.”

“The Democrats have lost their way, but it’s always been a two-party system,” Trump said. “Starting a third party just adds confusion. It’s never worked.”

New political parties are not uncommon in the US, but they rarely draw significant support away from the Republican and Democratic parties. However, Musk, the world’s richest person, who spent at least $250 million backing Trump in the 2024 election, could influence the 2026 congressional elections if he commits substantial funding.

Musk’s renewed feud with Trump could also carry risks, as his companies depend on billions in government contracts, and Tesla’s stock has recently taken hits.

It was unclear whether Musk had formally taken steps to establish the new party. Spokespeople for Musk and his political action committee, America PAC, did not immediately comment Sunday.

As of Sunday morning, several entities using names like “America Party,” “DOGE,” or “X,” with Musk listed in connection, had been registered with the Federal Election Commission in the hours following Musk’s announcement on X. However, these appeared inauthentic, listing contacts like “[email protected]” or untraceable ProtonMail addresses.

On Sunday, Musk spent the morning soliciting feedback from X users about the new party and indicated plans to use it to engage in the 2026 midterm elections.

Last month, Musk threatened to try to oust every member of Congress who voted for Trump’s bill, calling the tax cuts and spending package a “disgusting abomination” that would increase the federal deficit.

“The Republican Party has a clean sweep of the executive, legislative, and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS,” Musk wrote Sunday on X.

This marks a reversal for Musk, who in May, as his tenure at the White House was ending, said he planned to spend “a lot less” on politics in the future while focusing on SpaceX and Tesla.

Treasury Secretary Scott Bessent, who had clashed with Musk while he led DOGE, said on CNN’s “State of the Union” Sunday that while DOGE’s principles were popular, “if you look at the polling, Elon was not.”

“I imagine the boards of his companies did not like this announcement yesterday and will encourage him to focus on his business activities, not his political activities,” Bessent said.