President Donald Trump has pushed back against billionaire ally Elon Musk’s criticism of a sweeping tax and policy bill, defending its high cost as a necessary compromise to secure Congressional approval.
Musk, who recently announced his exit from leading the Department of Government Efficiency (Doge), expressed disappointment on CBS News’ Sunday Morning, arguing the bill’s $3.8 trillion deficit increase over a decade undermines Doge’s cost-cutting mission.
Speaking from the Oval Office on May 28, Trump acknowledged the bill’s imperfections but emphasized the political realities of passing legislation in a narrowly divided House.
As the bill faces Senate scrutiny and a looming debt ceiling deadline, tensions between Trump and Musk highlight a rare rift between the president and his influential advisor.
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Trump’s Defense of the “Big, Beautiful” Bill
The House-passed bill, approved on May 22, extends existing income tax cuts, introduces new exemptions for tipped wages and overtime, tightens restrictions on programs like Medicaid and food stamps, and funds Trump’s deportation initiatives.
According to the Congressional Budget Office, these measures will add $3.8 trillion to the federal deficit over 10 years, a figure that has drawn ire from fiscal conservatives and Musk alike. “I think a bill can be big, or it can be beautiful, but I don’t know if it can be both,” Musk quipped, reflecting his frustration with the legislation’s fiscal impact.
Trump, however, attributed the bill’s cost to the need to secure Republican votes in the House, where leaders could afford to lose only two GOP members. “We have to get many votes; we can’t be cutting too much,” Trump told reporters, noting ongoing negotiations as the bill heads to the Senate.
Did You Know?
The Department of Government Efficiency (Doge) was named after a popular internet meme featuring a Shiba Inu dog, a nod to Musk’s playful branding style.
A Fragile Path Forward
The bill’s journey is far from over, with lawmakers aiming to finalize it by July 4, though the real deadline looms in late July when the U.S. risks defaulting on its debt without a $4 trillion debt ceiling increase included in the package.
Trump expressed mixed feelings, stating, “I’m not happy about certain aspects of it, but I’m thrilled by others.” Recent market data indicates investor unease, with Treasury yields rising 0.2% this week amid concerns over the deficit’s growth.
The bill also includes controversial cuts proposed by Doge, such as $1.1 billion from the Corporation for Public Broadcasting and $8.3 billion in foreign aid, which Trump plans to submit to Congress for approval. These reductions align with Doge’s mission but have sparked backlash from affected sectors.
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Musk’s Exit and a Shifting Dynamic
Musk’s criticism of the bill marks a rare public divergence from Trump, coming as he steps back from his Doge role due to the expiration of his 130-day tenure as a special government employee.
His comments also follow his disapproval of Trump’s tariff policies, signaling growing friction. Musk’s focus is shifting back to Tesla, which reported a 20% profit drop in Q1 2025, partly attributed to his political involvement.
Despite the tension, Trump’s administration continues to lean on Doge’s recommendations, with proposed cuts reflecting Musk’s influence even as he exits Washington. The public spat raises questions about the future of their alliance and Doge’s role in shaping fiscal policy.
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