June 30, 2025 09:00 AM PST
(PenniesToSave.com) – President Trump’s proposed “One Big Beautiful Bill” recently passed a key procedural hurdle in the U.S. Senate. While the bill promises broad tax relief and significant infrastructure spending, it has sparked backlash from critics, including Tesla and SpaceX CEO Elon Musk. Musk warned that the legislation could harm innovation, inflate the deficit, and eliminate millions of future jobs. His public remarks intensified the debate over whether the bill represents economic renewal or fiscal recklessness.
This article explores what is inside the bill, why Musk opposes it, and how the legislation could impact everyday American families. With a blend of tax cuts, program reforms, and spending shifts, the measure aims to reshape national priorities. However, concerns remain over its long-term consequences. Below, we examine each dimension of the issue in detail.
Quick Links
- What Is in Trump’s New Tax and Spending Bill?
- Why Is Elon Musk Opposed to It?
- How Did the Bill Pass the Senate and What’s Next?
- Will This Help or Hurt the Average American Family?
- How Are Businesses and Investors Responding?
What Is in Trump’s New Tax and Spending Bill?
The Senate’s version of the “One Big Beautiful Bill” spans more than 900 pages and includes around $3.8 trillion in tax reductions and new federal spending over the next decade. It makes the Trump-era 2017 tax cuts permanent and expands deductions for tipped income, overtime pay, and vehicle purchases. Middle-class families could also benefit from an increase in the child tax credit, which would rise to roughly $2,200 per child.
The bill includes major funding for border security and defense. Nearly $350 billion is dedicated to immigration enforcement, with about $170 billion allocated to wall construction and surveillance technology. Additional increases are set aside for defense contractors, domestic manufacturing, and supply chain resilience.
To offset the cost, the legislation imposes tighter eligibility requirements on Medicaid and reduces funding for SNAP, the federal food stamp program. It also phases out tax credits for renewable energy projects and solar installations. Supporters argue the bill reasserts fiscal discipline by trimming welfare programs and promoting domestic production. Critics, however, say it undermines environmental priorities and social safety nets while adding to the national debt.
Why Is Elon Musk Opposed to It?
Elon Musk has been one of the most vocal critics of the bill. In a post on X, formerly known as Twitter, he described the legislation as “utterly insane and destructive.” He argued that the bill would “destroy millions of jobs in America and cause immense strategic harm” by rewarding outdated sectors of the economy at the expense of innovation. Musk’s companies, including Tesla and SpaceX, rely on incentives for clean energy, automation, and advanced manufacturing. The bill’s rollback of these incentives could directly affect the future of those industries.
Musk’s opposition is rooted in a broader concern about the direction of federal policy. He warned that continued deficit spending would lead to inflation, higher interest rates, and reduced investment in future technologies. By eliminating subsidies for wind and solar power, the bill may discourage long-term investment in renewables and undermine U.S. competitiveness in global energy markets.
Although Musk has often aligned with deregulation and pro-business policies, his comments reflect growing unease among entrepreneurs who fear that the bill privileges political optics over strategic foresight. From his perspective, the legislation risks trading long-term innovation for short-term popularity and political convenience.
How Did the Bill Pass the Senate and What’s Next?
The Senate advanced the bill using the budget reconciliation process, which allows a simple majority to pass fiscal legislation without facing a filibuster. It passed with a 51–49 vote, with all Republicans and one independent supporting the measure. Lawmakers made multiple revisions to comply with the Byrd Rule, which limits what provisions can be included in a reconciliation bill. As a result, some energy and healthcare elements were stripped out before the vote.
Now the legislation heads to the House of Representatives, where it is expected to face further debate and possible amendment. The House had already passed a separate version of the bill earlier this year, but key differences remain. These include the structure of tax deductions, the treatment of Medicaid eligibility, and the scale of green energy rollbacks. Lawmakers will need to reconcile those differences before the bill can be sent to the president for signing.
Republicans are hoping to finalize the legislation by Independence Day. That timeline is ambitious, especially given opposition from Democrats and concerns voiced by various advocacy groups. If successful, the bill would mark one of the most significant legislative victories of Trump’s second term.
Will This Help or Hurt the Average American Family?
The average American household could see immediate financial benefits from this legislation. Making the 2017 tax cuts permanent means lower federal income tax rates, higher standard deductions, and increased flexibility for deductions related to work expenses. Families with children may benefit from a modestly expanded child tax credit. Workers in tipped industries and those clocking significant overtime hours could see substantial tax savings as well.
However, these benefits are not evenly distributed. Households that rely on Medicaid or SNAP may face new barriers to receiving aid. The bill tightens eligibility rules, imposes new work requirements, and reduces funding levels, which could lead to millions losing access to healthcare and nutrition support. Analysts also warn that long-term inflation could erode the value of any tax relief, particularly if deficit spending pushes interest rates upward.
While some view the bill as a pro-growth measure that rewards work and strengthens families, others see it as a shift in federal priorities that favors certain demographics at the expense of the most vulnerable. Whether this results in a net gain or loss depends largely on individual circumstances, geographic location, and economic status.
How Are Businesses and Investors Responding?
The business community has responded to the bill with a mix of enthusiasm and anxiety. Companies tied to defense, construction, and fossil fuels have seen short-term gains, as the bill includes generous allocations for border infrastructure, military contracts, and traditional energy projects. The promise of tax stability has also appealed to corporations seeking predictable planning horizons.
On the other hand, investors in renewable energy, clean tech, and electric vehicles have expressed concern. The bill accelerates the expiration of solar and wind energy credits and introduces a new tax on imported green energy components. Companies like Tesla could see a slowdown in sales and development, while smaller startups may struggle to secure funding amid a less supportive policy environment.
Financial analysts are also watching how the bond market reacts to the bill’s long-term fiscal implications. An expanded deficit could pressure the Federal Reserve to maintain higher interest rates, making borrowing more expensive for consumers and businesses alike. In the short term, the legislation provides certain industries with an injection of capital. Over the longer term, however, it may reduce flexibility for private investment if federal debt crowds out credit availability.
Final Thoughts
President Trump’s “One Big Beautiful Bill” aims to deliver wide-ranging tax relief while boosting spending on border security, defense, and domestic production. To some, it represents a return to common-sense governance that prioritizes national interests, family values, and self-reliance. To others, it appears to sacrifice future progress by scaling back renewable energy and reducing support for lower-income Americans.
Elon Musk’s vocal opposition highlights a growing divide between traditional economic policies and forward-looking innovation. While many Americans will welcome the tax cuts and feel short-term relief, the deeper question is whether the country can afford this strategy in the long run. The final version of the bill will determine just how much the average household gains or loses, not only this year, but for decades to come.
Works Cited
Morgan, David. “Trump’s Sweeping Tax-Cut, Spending Bill Clears First US Senate Hurdle.” Reuters, 29 June 2025, www.reuters.com/world/us/us-senate-republicans-aim-push-ahead-trumps-sweeping-tax-cut-spending-bill-2025-06-28/.
“Senate Bill Hastens End of Wind, Solar Tax Credits and Imposes New Tax.” Reuters, 28 June 2025, www.reuters.com/sustainability/climate-energy/senate-bill-hastens-end-wind-solar-tax-credits-imposes-new-tax-2025-06-28/.
Hubbard, Kaia, and Caitlin Yilek. “Here’s What’s in Trump’s ‘Big, Beautiful Bill’ as Senate Eyes a Vote.” CBS News, 28 June 2025, www.cbsnews.com/news/whats-in-trump-big-beautiful-bill-senate-version/.
“Trump’s ‘Big Beautiful Bill’ Threatens Millions with Medicaid Cuts.” The Washington Post, 28 June 2025, www.washingtonpost.com/business/2025/06/28/republican-senate-trump-tax-immigration-plan/.
“Elon Musk Says Senate Bill Would Destroy Jobs and Harm US.” Reuters, 28 June 2025, www.reuters.com/business/autos-transportation/elon-musk-says-senate-bill-would-destroy-jobs-harm-us-2025-06-28/.