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Elon Musk Breaks with Trump, Declares New America Party

🔹 STORY HIGHLIGHTS – AMERICA PARTY LAUNCH

Elon Musk declares formation of the America Party following break with Trump
Move triggered by newly passed tax and spending legislation
Musk had warned he would form a new party if the “insane spending bill” passed
Musk: “We live in a one-party system, not a democracy”
America Party not yet formally registered with the FEC
Dubious filings with Musk’s name flood the FEC database
Musk engages public on X, hints at 2026 election plans
Tesla stock falls amid concerns over Musk’s political focus
Treasury Secretary says “Elon was not” popular, despite policy appeal

Elon Musk, the billionaire entrepreneur and one of the most polarizing figures in American public life, has ignited fresh political turmoil with the surprise announcement of his new political outfit — the America Party. The declaration comes in the immediate aftermath of a public fallout with President Donald Trump, sparked by the administration’s controversial tax and spending overhaul signed into law on Friday.

Musk’s announcement, made on X — the social media platform he owns — marks a dramatic shift in his once close association with the Trump administration. Until recently, Musk served in a high-profile capacity as head of the Department of Government Efficiency, a now-dismantled agency known for aggressively cutting bureaucracy and trimming regulatory fat.

However, tensions had been simmering for months. The passage of Trump’s long-debated tax bill, which includes sweeping tax cuts and significant government spending reductions, appears to have been the breaking point.

Musk had repeatedly expressed concern over the bill’s implications for the federal deficit, warning publicly that it would balloon government waste under the guise of reform. As the bill advanced through Congress, Musk issued a warning of his own: he would form a new political movement if what he described as an “insane spending bill” became law.

“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk posted on Saturday.

“Today, the America Party is formed to give you back your freedom.”

The statement, brief but loaded, marked the beginning of what could become a new chapter in U.S. politics — or simply another high-profile sideshow. Historically, the American political landscape has proven resistant to third-party efforts. Despite growing dissatisfaction with both Democrats and Republicans, new parties have consistently failed to capture meaningful voter support.

Yet Musk is not a typical figure in this equation. As the world’s wealthiest man, his influence spans the business, tech, and media worlds — and increasingly, politics. He reportedly funneled over $250 million into Trump’s 2024 re-election campaign, a figure that dwarfed contributions from many traditional GOP donors. With that level of spending power, Musk’s America Party could potentially become a force in the 2026 midterm elections, where control of Congress hangs in the balance.

Despite the political ambition, the practical groundwork of forming a party remains unclear. As of Sunday morning, the Federal Election Commission (FEC) had been flooded with new entries containing names like “America Party,” “DOGE,” or “X.” Several of these filings named Musk or associated individuals, but most appeared dubious — listing email addresses like wentsnowboarding@yahoo.com and anonymous ProtonMail accounts. There has been no confirmation from Musk or his political action committee, America PAC, regarding formal registration.

Nonetheless, Musk was actively engaging users on X throughout the weekend. He solicited public opinion on potential party policies and hinted that the organization’s long-term goal would be to contest seats in the 2026 elections.

“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,” Musk said in another pointed X post on Sunday.

“Expanding the national debt by a record FIVE TRILLION DOLLARS.”

The aggressive stance represents a sharp pivot from Musk’s earlier position. Just two months ago, as his role in Washington was nearing its end, he had signaled a retreat from the political spotlight. Speaking to reporters in May, Musk had said he planned to spend “a lot less” on politics moving forward and focus instead on engineering and technology.

That sentiment now seems firmly in the rearview. With his party announcement, Musk appears to be embracing political activism in a way not seen since his early support for Trump. However, the move may come at a price.

Shares in Tesla, Musk’s flagship electric vehicle company, dipped following the political news. Investors appear wary of the distractions that may come with such a high-profile political endeavor. Government watchdogs have also noted that Musk’s ventures — including SpaceX — are heavily reliant on federal contracts, potentially making his political moves more complicated.

On Sunday, Treasury Secretary Scott Bessent weighed in during an appearance on CNN’s State of the Union. Bessent, who previously clashed with Musk during his time running the now-defunct Department of Government Efficiency (DOGE), cast doubt on Musk’s political appeal.

“DOGE’s principles were popular,” Bessent said.

“But if you look at the polling, Elon was not.”

He added that the boards of Musk’s companies were likely displeased by the announcement, speculating that they might pressure him to focus on corporate responsibilities rather than political crusades.

“I imagine that those board of directors did not like this announcement yesterday,” Bessent added,

“and will be encouraging him to focus on his business activities, not his political activities.”

As the dust settles, questions linger. Will Musk formally launch the America Party in time for 2026? Can a billionaire outsider gain ground in a system structurally geared toward two-party dominance? And will Musk’s latest gamble — this time not on rockets or electric cars, but on political ideology — ultimately pay off?

Only time will tell.

Elon Musk’s declaration of the America Party signals more than a personal rift with former ally Donald Trump—it marks a bold foray into the heart of American politics by one of the world’s most influential figures. As the lines blur between tech power and political ambition, Musk’s next steps could reshape the national conversation ahead of the 2026 elections. Whether his new party can disrupt the entrenched two-party system remains uncertain, but one thing is clear: Musk has once again placed himself at the center of a storm only he could generate.

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New York Faces Health Shakeup Under Trump’s Mega Tax Bill

📌 STORY HIGHLIGHTS

Senate passes One Big Beautiful Bill Act with a tie-breaking vote from Vice President Vance
New Medicaid funding limits could cost New York up to $8 billion
At least 1.5 million residents projected to lose health coverage
Senate bill lowers allowable provider tax cap from 6% to 3.5% by 2028
Risk to $1.8 billion annual tax on managed care organizations
Longer ER wait times and more uninsured emergency cases anticipated

The controversial federal tax and spending bill championed by former President Donald Trump has taken a more alarming turn for New York’s health care system as it continues to advance through Congress. Known formally as the One Big Beautiful Bill Act, the legislation cleared the U.S. Senate on Tuesday after a tense 51-50 vote—decided by Vice President J.D. Vance—sparking immediate criticism from state officials and hospital leaders.

Though initially touted by Republican leaders as a measure to deliver extended tax cuts and bolster border security funding, the latest Senate revisions have raised red flags among those overseeing New York’s vast health care infrastructure. At the center of the concern lies a key provision in the bill that aims to curb the use of “provider taxes,” a fiscal strategy long employed by New York and several other states to bolster Medicaid funding through federal matching dollars.

Health officials say the Senate version of the bill—while bearing the same core structure as the House version passed earlier—has made several critical adjustments that could have a deeper and more immediate impact on states like New York. Most notably, the legislation proposes reducing the federal cap on provider taxes from 6% to 3.5%, a move that hospital advocates warn will severely undercut state Medicaid revenue strategies.

Bea Grause, president of the Healthcare Association of New York State (HANYS), called the updated Senate version of the bill “worse” than its predecessor.

“It’s worse,” Grause stated, emphasizing that the Senate’s revisions would escalate the financial harm to hospitals and health systems across the state.

New York has relied on a system of narrowly targeted provider taxes—some dating back to the 1990s—that affect specific sectors of the health care system, such as hospitals, nursing homes, and managed care organizations. These taxes are designed not only to generate state revenue but to unlock additional federal matching dollars under Medicaid.

Kevin Krawiecki, Vice President of Fiscal Policy at HANYS, explained how this model works:

“For example, the state can levy a $1 billion tax on hospital revenues. When that amount is funneled through the Medicaid program, the federal government matches it. The hospitals end up receiving back the taxed amount, along with additional federal funds. Everyone benefits—or at least, they used to.”

With the new 3.5% cap in place, New York’s existing 4.77% hospital surcharge would be in violation of federal law, potentially resulting in a $1.5 billion shortfall, Krawiecki warned.

State officials estimate that $3.3 billion in total revenue could be lost by 2032 just from limiting provider taxes. And that’s not the only risk. The Senate version of the bill also casts doubt on a separate tax New York enacted last year on managed care organizations—one that currently generates $1.8 billion annually. If invalidated, that loss would deal yet another financial blow.

Hospital leaders fear that the combined effect of the bill’s provisions could result in a long-term funding loss of $8 billion, which is $1 billion more than the impact projected under the House version.

“The health care system simply won’t be able to function at its current levels if these funding streams are cut,” said Grause. “Hospitals will be forced to absorb more patients without coverage, leading to longer wait times and increased strain on emergency departments.”

Meanwhile, Governor Kathy Hochul condemned the Senate’s move, pointing out that the bill does more to protect the wealthiest than to care for the most vulnerable.

“Senate Republicans moved one step closer to ripping health care away from millions of Americans to pay for massive tax breaks for billionaires,” the Governor said in a public statement.

From Washington, Republican lawmakers defended the bill as a long-overdue attempt to reform entitlement programs and control spending. Senate Majority Leader John Thune, a Republican from South Dakota, addressed critics in a floor speech over the weekend.

“We’re looking at an exceedingly rare opportunity to root out waste, fraud, and abuse,” Thune said. “This is the first real entitlement reform in decades—reform that will put these programs on a more sustainable path for today’s recipients and for tomorrow’s.”

But not everyone sees it that way. Bill Hammond, a senior fellow at the fiscally conservative Empire Center, acknowledged that provider taxes have been used to manipulate federal reimbursement structures.

“I think ‘gimmick’ is an absolutely fair word,” Hammond said. “You are gaming the system that finances health care at the federal level, and you’re undermining the spirit of the law.”

Even so, supporters of New York’s model argue that it has been a federally approved and well-regulated mechanism that ensures the state can meet its Medicaid obligations without imposing broad-based taxes.

“It allows the state to raise its share of funding without burdening the entire population,” said Grause. “It targets specific, well-defined providers in a way that’s legal and effective.”

Beyond funding formulas, the Senate version of the bill also retains several House-approved provisions that could impact tens of thousands of New Yorkers’ insurance coverage. These include new work requirements for nondisabled adults and the elimination of tax credits for noncitizens to buy health insurance.

The stakes, say advocates, are now clear: if these changes become law, New York’s hospitals and health systems could face service disruptions, workforce strain, and a surge in uninsured patients relying heavily on emergency care.

“People still get sick and still need health care,” Grause concluded. “They will still come through those emergency room doors. They just won’t have insurance.”

As Trump’s sweeping tax and spending bill advances, New York stands at a critical crossroads. While supporters hail it as a path to fiscal reform and stronger national priorities, health officials warn of devastating consequences for millions who rely on Medicaid and hospital care. With billions in potential funding losses and a fragile health system at stake, the true impact of the legislation may only unfold in the coming years—where policy meets real lives, and the cost of reform is measured not just in dollars, but in access, care, and human need.