Twitter owner Elon Musk has doubled down on his criticism of former President Donald Trump’s support for the recently unveiled “American Renewal Act,” branding it “utterly insane” and warning that backing such legislation would be “political suicide” for any lawmaker. Musk’s scathing remarks came in a series of tweets and interviews over the past 48 hours, sending shockwaves through both Silicon Valley and Capitol Hill.
@elonmusk “This so-called renewal act is a recipe for economic collapse—utterly insane.” Elon Musk’s critique of the American Renewal Act
The “American Renewal Act,” championed by Trump loyalists in Congress, proposes sweeping changes to Social Security, Medicare, and federal infrastructure spending. Supporters argue it will balance the budget within five years, while critics—from Democrats to centrist Republicans—say its deep cuts to entitlement programs would devastate millions of seniors and low-income families. Musk, whose net worth recently soared above $250 billion, warned investors during an earnings call for Tesla, Inc. that the bill’s draconian measures could trigger a market crash.
@Reuters “Tech billionaire Elon Musk warns American Renewal Act could spark global financial turmoil.” Reuters business analysis tweet
In his Bloomberg interview, Musk elaborated on his stance: “You’re looking at a plan that slashes critical social safety nets, deregulates finance to an unprecedented degree, and cuts infrastructure funding by 40%. It’s reckless—political suicide for any representative who actually cares about their constituents.”
Musk’s comments echo concerns raised by the Congressional Budget Office, which estimated the bill would reduce federal revenue by $2 trillion over a decade and increase out-of-pocket health costs for retirees by 25%. “Cutting Medicare that deeply isn’t just unwise, it’s unethical,” Musk told financial reporters during a press briefing for SpaceX. “Our country’s greatness depends on caring for the most vulnerable—this does the opposite.”
@CBOgov “Projected fiscal impact of the American Renewal Act shows significant increases in poverty among seniors.” Official CBO findings
Trump, who tweeted his support for the bill on December 8, fired back at Musk in a post on his social platform: “Billionaires like @elonmusk love to bash real change—he should focus on launching rockets, not lecturing Congress.”
@realDonaldTrump “Elon should stick to rockets—my bill will MAKE AMERICA GREAT AGAIN.” Trump’s rebuttal to Musk
Several House Republicans have already expressed unease. Representative Nancy Mace (R-SC) told CNN Politics that while fiscal responsibility is vital, “we cannot abandon seniors who rely on Medicare, nor dismantle infrastructure just to score budget points.” She praised Musk’s “courage to speak truth to power.”
@SpeakerPelosi “We need bipartisan solutions, not radical cuts that hurt Americans.” House Speaker Pelosi’s response
On the Senate side, Majority Leader Mitch McConnell has urged patience: “We will consider amendments in committee to protect vulnerable groups,” according to a statement posted by Politico. But McConnell’s own support is seen as tepid, with insiders warning that the bill could collapse if Musk and other high-profile critics maintain their opposition.
Wall Street is already jittery. The Wall Street Journal reports that 10-year Treasury yields spiked to 4.2% amid fears of unchecked borrowing, and the Dow Jones Industrial Average fell 350 points following Musk’s Bloomberg interview. “Markets hate uncertainty,” says economist Diane Swonk. “This bill adds political and economic risk at a time when global tensions are already high.”
@WSJMarkets “Stocks slide as Musk warns American Renewal Act spells disaster for U.S. economy.” Market reaction update
Even traditional Trump allies in the tech sector have voiced reservations. Peter Thiel, a Silicon Valley venture capitalist and early president of Facebook’s board, posted on his blog that while he appreciates “disruptive thinking,” “this proposal ignores the human costs and risks undermining America’s global leadership.”
Humanitarian organizations have seized on Musk’s intervention to launch their own campaigns. The AARP released an alert urging seniors to contact Congress, while the American Society of Civil Engineers published a report warning of crumbling roads and bridges if infrastructure cuts proceed.
@ASCE “Halving infrastructure budgets will cost us 1.5 million jobs and $2 trillion in GDP.” ASCE infrastructure study tweet
The bill’s critics argue that rather than slashing programs that millions of Americans depend on, Congress should tackle revenue shortfalls by closing corporate tax loopholes and introducing modest rate increases on the wealthiest households. Economist Gabriel Zucman of UC Berkeley outlines his preferred alternative in a New York Times opinion piece, calling for a “wealth tax” that would generate $800 billion annually.
Amid the firestorm, Elon Musk has refused to back down. In a follow-up tweet thread, he urged his 160 million followers to read the full text of the bill—linking to the legislation on Congress.gov—and to contact their representatives. “If you value healthcare, infrastructure, and a stable economy,” he wrote, “tell Congress to vote NO.”
@elonmusk “Transparency matters—read the bill, then decide if you want your elders living in poverty.” Musk’s call to action
Whether Musk’s intervention will tip the scales remains to be seen. As Congress prepares for debate next week, lawmakers on both sides acknowledge his influence among young, tech-savvy voters. Representative Jared Golden (D-ME) told NPR that “when someone like Musk speaks up, people listen—it injects urgency into the process.”
For now, the “American Renewal Act” hangs in the balance, caught between champions of fiscal austerity and voices warning of social collapse. Elon Musk’s branding of the bill as “utterly insane” and “political suicide” adds a new dimension to the fight—one that may ultimately decide whether this measure survives or becomes the latest casualty of Capitol Hill brinkmanship.
