Elon Musk Departs DOGE After Criticizing Trump's Tax Bill

Elon Musk is leaving his position as a major adviser to Donald Trump a day after criticizing the US president's contentious tax package for potentially increasing federal debt by up to $3 trillion ($4.67 trillion).

Mr Musk formerly oversaw the Trump administration's so-called Department of Federal Efficiency (DOGE), which sought to cut trillions of dollars in federal spending, before announcing his retirement last month.

However, in an interview with US channel CBS, the owner of tech behemoths SpaceX and Telsa said Mr Trump's massive tax bill, officially called the "One Big, Beautiful Bill Act," contradicts DOGE's goal of decreasing the federal deficit.

"I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing," Mr. Musk explained.

The United States president has often stated that the "big beautiful bill" will herald a new "golden age" for the country.

Following Mr Musk's comments, Mr Trump told reporters he was also concerned about some provisions of the measure.

"We will be negotiating that bill, and I'm not happy about certain aspects of it, but I'm thrilled by other aspects of it," he told CNN.

The bill, which passed the House of Representatives, seeks to reduce social safety net programs to pay for a 10-year extension of significant tax cuts for higher-income Americans.

The spending bill is the centerpiece of President Trump's domestic policy program, and it has the potential to define his second term in office.

Independent analysts have cautioned that it might increase the deficit by up to $US4 trillion over a decade.

Elon Musk Moves Away from Government Circles

Mr Musk's comments came a day before he announced his departure from DOGE via his social media platform, X.

He praised Mr Trump and stated that his "scheduled time as a Special Government Employee" was coming to an end but made no mention of the funding measure.

A White House official, who sought anonymity to discuss the situation, confirmed Mr Musk's departure.

He had previously indicated that he would be leaving the government to focus on startups such as Tesla and SpaceX.

He has also stated that he will cut his political spending because "I believe I have done enough."

In a separate interview with The Washington Post, Mr. Musk stated that the "federal bureaucracy situation" he attempted to tackle with DOGE was "much worse than I realized."

"I thought there were problems, but it sure is an uphill battle trying to improve things in [Washington] DC, to say the least."

Mr Musk had previously expressed optimism about the possibility to transform Washington. He wore campaign caps in the White House, spoke at campaign rallies, and described excessive spending as an existential crisis.

He also gushed about the US president, selling him a Tesla on the White House grounds.

"The more I've gotten to know President Trump, the more I like the guy," Mr Musk once said. "Frankly, I love him."

Mr Musk was described as "a truly great American" by Mr Trump in return.

The 'Big Beautiful Bill' Is Off to the Senate for a Showdown

It is unclear how Mr Musk's comments about the bill will affect the legislative debate.

However, Mr Trump remains the dominating figure in the Republican Party, and many Republican leaders have been unwilling to defy the president when he applies pressure to advance his agenda.

According to a preliminary assessment from the Congressional Budget Office, the tax provisions will boost federal deficits by $US3.8 trillion over the next decade.

Changes to federal health programs, food stamps, and other services would lower spending by more than $1 trillion within the same period.

House Republican leaders claim that increased economic development will allow the plan to be deficit-neutral or reduce deficits, but outside watchdogs are skeptical.

The Committee for a Responsible Federal Budget estimates that the law will add $US3 trillion to the debt, including interest, over the next decade.

The plan passed the US lower house by a single vote, and some Republican senators now entrusted with reviewing it have expressed reservations over the reduction of welfare programs.