Is Elon Musk's 'America Party' threat real if Senate approves $5 trillion bill?

New Delhi: Tesla and SpaceX CEO Elon Musk called for the formation of a new political party late Monday, reacting to heated debates over a contentious U.S. Senate spending bill.

In a post on X, Musk declared, “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.”

His remarks come as the Senate considers the “One Big Beautiful Bill Act,” a legislative package that includes a proposed $5 trillion increase to the federal debt ceiling, tax cuts, and adjustments to the child tax credit.

The bill, closely aligned with much of former President Donald Trump’s agenda, has faced sharp criticism for its fiscal impact. The Congressional Budget Office estimates it could add $3 trillion to the national debt over the next decade.

A major point of contention arose when the Senate voted 56-44 to reject a measure to remove roughly 1.4 million undocumented immigrants from Medicaid. The proposal failed to meet the required 60 votes after Senate Parliamentarian Elizabeth MacDonough ruled it violated the Byrd Rule.

Musk’s idea of a new party echoes historical realignments in U.S. politics, such as the emergence of the Republican Party in the 1850s following the collapse of the Whigs.

However, America’s first-past-the-post electoral system has long favored a two-party structure, reinforced by legal and procedural barriers in state ballot access laws. Musk’s post offered no details on the platform or structure of the proposed “America Party,” leaving its feasibility and scope open to speculation.

The Senate is racing toward a self-imposed July 4 deadline to pass the bill and send it to the President, following the House’s narrow approval. The legislation includes provisions to eliminate taxes on Social Security income and tips, increase deductions for older Americans, and implement the debated Medicaid changes.

As deliberations continue, Musk’s call for a new party has injected fresh intrigue into the political landscape, with both lawmakers and the public closely watching developments ahead of the 2026 midterm elections.