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Elon Musk freezes Trump's last $100 million as alliance hits a rough patch

Elon Musk has withheld the final $100 million of his $300 million commitment to Donald Trump's reelection, deepening tensions over policy, Nasa nominee withdrawal, and spending disputes

Donald Trump, Trump, Elon Musk

Elon Musk with President Donald Trump (Photo: PTI)

Rimjhim Singh New Delhi

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Elon Musk has withheld the final $100 million of a $300 million commitment he had promised to support President Donald Trump’s reelection efforts, signaling a deepening rift between the two powerful figures. According to The Wall Street Journal, the missing funds and escalating tensions have left Trump’s campaign team scrambling to understand where things stand. 
Musk’s decision comes amid growing frustration over Trump’s administration and key policy decisions. Trump advisers confirmed to The Wall Street Journal that the last installment of Musk’s promised support remains unpaid. Insiders have described the relationship as “strained”, pointing to disagreements over policy and Musk’s increasing criticisms of Trump’s legislative agenda, the news report said. 
 
One senior White House official said Trump was baffled by Musk’s sudden decision to lash out at the Republicans’ sprawling tax-and-spending bill, especially after months of collaboration. “Trump wasn’t happy about Musk’s decision to lambaste his signature legislation,” the official said, adding that senior advisers were blindsided by the billionaire’s public offensive.
 

Nasa nominee sparks tensions

Another source of friction came from the White House’s withdrawal of Trump’s nominee Jared Isaacman to lead US space agency Nasa. Musk, a close ally of Isaacman, had advocated for his appointment. When the nomination was nixed, Musk complained to associates that he had donated “hundreds of millions of dollars” to support Trump’s reelection, only to see his ally sidelined. “It is rare to find someone so competent and good-hearted,” Musk later posted on X, defending Isaacman. 
White House officials disputed claims that the move was aimed at punishing Musk. They insisted the decision stemmed from Isaacman’s previous donations to Democrats — a fact they said was known to the administration for months.
 

Elon Musk’s public criticism escalates

Fuelled by frustrations over Isaacman’s nomination and policy disagreements, Musk has become increasingly vocal. In a CBS News interview, he blasted Trump’s ‘Big Beautiful Bill’, calling it a “disgusting abomination” that would add “trillions to the deficit” and undermine efforts to streamline federal spending. 
  On X, he urged his followers to pressure lawmakers to “KILL the BILL”. 
 
  The tax-and-spending bill, which includes deep spending cuts alongside controversial provisions like rolling back clean-energy tax credits, has become a flashpoint. Musk’s car company, Tesla, stands to lose significant support if electric vehicle credits are slashed.     
 

Donald Trump attempts to downplay fallout

Despite the growing tension, Trump has tried to keep the situation under wraps. During Musk’s farewell event at the White House, Trump reportedly said, “Elon is not really leaving. He’s going to be back and forth.” Yet Musk’s dwindling presence at the White House — from frequent visits to occasional appearances — reflects the cooling relationship. 
According to insiders, Trump is a “forgiving person”, but he “doesn’t forget slights like this”, the news report said. Some administration officials even encouraged lawmakers to post positive messages about Musk’s service in an effort to avoid further clashes. 
The rift between the two men is playing out as the GOP’s signature bill faces critical votes. While Musk’s influence among spending hawks in the party is undeniable, it remains to be seen whether his public defiance will derail the legislation. House Speaker Mike Johnson said he was “blindsided” by Musk’s sudden turnaround, describing a recent conversation with the billionaire as “friendly and fruitful” — only to be followed by a scathing online attack.

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First Published: Jun 05 2025 | 11:17 AM IST

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