Elon Musk Warns Trump’s Budget Bill Undermines DOGE — 5 Ways It Could Impact Your Wallet
Written by
Heather Altamirano
Edited by
Cory Dudak
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Elon Musk officially announced he is leaving the Department of Government Efficiency (DOGE), confirming rumors he’s stepping away from his role of slashing budgets and reducing financial waste.
“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending,” Musk posted on X.”
The news came shortly after President Trump’s “big beautiful bill” passed the House, which Musk doesn’t approve of. In an interview with CBS News, the Tesla CEO said, “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.”
Musk was transparent about his frustrations over the bill and said, “I think a bill can be big or it can be beautiful, but I don’t know if it can be both.”
According to finance expert Andrew Lokenauth with Be Fluent in Finance, Trump’s bill could impact your wallet in at least five categories:
Tax Cut Extensions
Many key provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) are set to expire at the end of 2025, and a big part of the bill will extend measures to give tax breaks. However, Lokenauth explained who it really helps — the rich.
“I’ve analyzed the math on this, and while it sounds good on paper, it’s actually pretty deceptive,” he explained. “The extension of the 2017 tax cuts mainly benefits households making over $400K,” he stated.
He added, “middle-class families might see about $500 to $1000 in savings, but that’s temporary and phases out by 2029. The wealthy get permanent cuts worth roughly $25K+ annually.”
Clean Energy Credit Elimination
For those who are going green, there’s no longer a financial incentive to do so. The clean energy credit is eliminated.
“The removal of clean energy tax credits means homeowners lose that sweet 30% credit on solar installations and EVs,” Lokenauth said. “We’re talking about $7,500 less in savings for anyone trying to go green.”
However, it also means your energy bills will go up $150 to $200 monthly without these incentives.
Medicaid Work Requirements
A new proposal in the bill would require Medicaid recipients to submit proof of work hours, The New York Times reported.
“If you are able to work and you refuse to do so, you are defrauding the system,” House Speaker Mike Johnson said on “Face the Nation with Margaret Brennan.”
According to Lokenauth, many people could be without healthcare as a result.
“Adding work requirements to Medicaid means about 2 million Americans might lose coverage,” he said. “That translates to roughly $12,000 per person annually in out-of-pocket medical costs. The impact is brutal on working families who can’t meet the 20-hour weekly requirement due to health issues.”
Border Security Spending
Trump wants to throw a lot of money at securing the border, but Americans will pay the price, per Lokenauth.
“The increased border spending — about $20 billion or more — comes directly from taxpayer money.”
In addition, he believes taxpayers will shell out around $175 a year to offset the cost. “But what really gets me is how this diverts funds from other crucial programs,” he said.
Federal Agency Budget Cuts
Federal agency budget cuts result in reduced staff and the elimination of some programs completely.
“The 30% reduction in non-defense spending means fewer food inspectors, slower tax refunds and reduced small business support,” Lokenauth explained. “Small business loans are getting slashed by roughly 40%, which means less access to capital for entrepreneurs.”
The bill still needs to pass the Senate, but people are bracing for what could come if it gets through the next step.
“One thing driving me nuts about this whole situation is how the deficit actually increased by $3.8 trillion despite all these cuts,” Lokenauth said. “The math just doesn’t add up, and everyday Americans are paying the price while big corporations get even more tax breaks.”
‘Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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