Musk criticizes Senate's new energy bill draft

On his birthday, June 28, 2025, Elon Musk openly criticized the latest Senate draft of a significant spending proposal, bringing attention to its potential negative impact on employment in the U.S. and its tax implications on renewable energy projects.

The new bill, put forth by the Senate, aims to modify existing financial structures, but has sparked significant opposition over its proposed tax hikes on renewable energy and reductions in incentives, Fox Business reported.

A key event took place one day before Musk's comments when Lindsey Graham of the Senate Budget Committee revealed the content of the bill draft. This proposal is backed by Senate members from the Republican Party and aims to present the final version to President Donald Trump by July 4, 2025.

Musk Raises Concerns About Job Destruction

Musk did not hold back his concerns, warning that the new bill could have a devastating effect on employment across America. His statements marked yet another public disagreement with Trump, following an earlier fallout that occurred in June over the bill.

During his remarks, Musk emphasized the strategic harm such legislation might cause for the country overall. He criticized those supporting the bill, asserting they made a poor decision.

Besides Musk, the proposed tax changes have drawn the attention of major stakeholders in the renewable energy sector. The American Clean Power Association (ACP) was vocal about its dissatisfaction with the bill's provisions.

New Energy Taxes Face Stiff Opposition

Jason Grumet, CEO of the ACP, condemned the Senate for introducing language that unexpectedly increases taxes on the domestic production of energy. He was particularly critical of the way these changes seem targeted at burgeoning sectors like wind and solar power.

"In what can only be described as ‘midnight dumping,’ the Senate has proposed a punitive tax hike targeting the fastest-growing sectors of our energy industry," Grumet stated. This sentiment has been echoed throughout the energy industry.

The revised bill has implications not only for taxes but for energy credits as well. According to the draft, facilities commencing operations after 2028 will see a capped credit, fostering criticism from industry leaders.

Bill's Broader Economic Implications

In addition to the renewable energy concerns, the Senate bill proposes changes to the Medicaid provider tax rate, adjusts cost-sharing for food benefits, and alters SALT deduction caps. These wider economic aspects of the bill reflect the Republican Party's strategic direction.

Detractors see the likely impacts as overwhelmingly negative. Senator Elizabeth Warren has positioned herself against the bill, announcing a plan to slow its progress by forcing a full reading of the document.

Warren rallied Democrats to strongly oppose the sweeping changes, emphasizing a need to resist what she dubbed the "Big Beautiful Bill."

White House Remains Silent

As tensions continue to mount, the silence from the White House has been noticeable. There has been no immediate comment regarding the pushback or the specifics of the spending bill.

The draft bill remains a contentious topic. It is poised to significantly impact both political alignments and the economic landscape as the July 4 deadline approaches.

Observers within the energy sector and beyond are now waiting to see what changes, if any, will come from Senate leadership in response to the feedback. Their decisions could shape the future of American energy policy.

Meanwhile, both political and industry leaders continue to analyze the long-term effects of the bill's provisions, weighing the balance between economic growth, job creation, and energy sustainability.