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White House allies ‘disappointed’ at Musk’s opposition to megabill

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Republican allies close to the White House are privately arguing that the former special government employee — who spent Tuesday afternoon blasting the spending bill and threatening to retaliate against its supporters — is opposing the bill because it harms the tech billionaire’s business interests.

The House-passed megabill represents the president’s chief — and potentially only — major legislative priority this Congress. But Musk’s opposition suggests that the coalition that vaulted Trump to the White House is still facing internal disagreement over it as it makes its way through the Senate. It marks another dust-up between the MAGA and Tech Right. And it raises the possibility some members face pressure from Musk if they ultimately support it. 

“The West Wing is perplexed, unenthused, and disappointed” with Musk, who left the White House to attend to his ailing business empire, according to one White House official, who like others interviewed for this story were granted anonymity to be candid about an ally who spent hundreds of millions to ensconce them in the White House.

Among other criticisms, Musk posted to X on May 29 that the bill would not “change tax incentives for oil & gas, just EV/solar,” and Tesla Energy has also come out against the bill. ·

The legislation terminates multiple tax credits that Tesla — as one of the largest electric vehicle manufacturers in America — currently qualifies for: a $7,500 federal tax credit for new EVs, the $4,000 credit for used EVs, and a $1,000 credit for Level 2 charger installation. The bill would also impose a $250 yearly federal registration fee for EV owners only.

If the bill is passed as currently written, Tesla’s $11.4 billion in regulatory credits wouldexpire at the end of 2025.Those credits contributed to Tesla’s profitability in the first quarter this year.

Axios first reported some of the recent tension points between Musk and White House aides.

The White House allies urged a more critical look at Musk and Tesla’s claims about the megabill.

“When businessmen criticize legislation, journalists don’t take them at their word, they look at how the legislation would impact their business interests,” said a Republican close to the White House. “They should be doing that in this case.”

Musk’s broadsides against the bill angered the White House, which came amid a critical effort this week to line up support for the package in the Senate.

At a Tuesday briefing, press secretary Karoline Leavitt downplayed the criticism, saying Trump “already knows where Elon Musk stood on this bill.”

But privately, aides cast the attack as an attempt at retaliation after Musk failed to convince Republicans to preserve an electric vehicle tax credit in the megabill that would benefit Tesla, said one person familiar with the situation who was granted anonymity to describe internal thinking.

The billionaire had also recently suffered a setback in a separate attempt to further enrich his businesses, after the administration rejected his push for the Federal Aviation Administration to incorporate his Starlink satellites into the nation’s air traffic control system.

Further heightening tensions, the person familiar said, was that Musk’s departure from the White House came despite his efforts to convince aides to let him to stay — even though he had hit his mandated 130-day limit as a special government employee.

Though Musk’s latest tweets came as a surprise — landing for maximum impact in the middle of Leavitt’s briefing and Senate Republicans’ group lunch — the broader scorched-earth exit was seen by many Trump advisers and allies as an inevitability, said a second person familiar with the situation. The only question, the person said, was how quickly it’d happen and what would trigger the falling-out.

“These days were always coming,” said the second person. “His departure is going as well as can be hoped.”

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Congress

Thom Tillis isn’t done yet with Donald Trump’s nominees

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Thom Tillis took on President Donald Trump’s administration in a monthslong battle to quash the criminal investigation into Federal Reserve Chair Jerome Powell — and won.

Now he’s urging those around the president to take his latest ultimatum seriously — that he won’t confirm for attorney general anyone who excuses the events of Jan. 6, 2021.

“Hopefully they’ll take me at my word when I say anybody who equivocated on the Jan. 6 rioters, I just can’t support,” the North Carolina Republican said about Justice Department nominees.

Tillis has major leverage as a member of the Judiciary Committee, where Republicans have a one-vote advantage and he can exercise an effective veto.

That’s exactly what Tillis did in the Senate Banking Committee with would-be Powell successor Kevin Warsh — until Wednesday, when he cast a vote allowing Warsh to move to the floor for confirmation next month.

He did so only after a three-month stalemate over the Justice Department’s investigation into whether Powell lied to Congress during a Senate hearing last year — a probe that Tillis warned was an attempt by Trump advisors to target the independence of the Federal Reserve.

A flurry of 11th-hour negotiations led to U.S. Attorney Jeanine Pirro announcing last week she was closing the probe, with Tillis describing in an interview how he “spoke to people in DOJ several times over the course of a few days” around the time of the announcement. He also said he was “also sort of bouncing off where Chair Powell was, too,” though he declined to say if he spoke directly to Powell.

It was a rare instance of a sitting senator successfully using leverage against an administration of his own party and coming out on top.

“Every single member of the conference has the same option,” Tillis said about whether other GOP colleagues could replicate his model. “I’ve seen people do silly things like blanket holds and stuff like that that are not sustainable.”

In the hours after the committee vote Wednesday, Tillis again spoke out against the whitewashing of Jan. 6, recounting Wednesday how he was the last senator to leave the chamber the day a mob of Trump supporters temporarily suspended the counting of the 2020 Electoral College vote. He previously sank Ed Martin’s U.S. attorney nomination because of his previous comments related to the riot and his work defending those who took part in it.

“I’ll scrub it when a nominee comes forward, and I’ll apply the Martin standard,” Tillis said of any pick to succeed ousted Attorney General Pam Bondi. “By the way, I don’t think Martin is employed by the DOJ anymore, either, is he?”

There are some differences between the situation with Powell and the vacancy atop the Justice Department.

Hanging over the Fed chair negotiations was a May 15 end date for Powell’s term, Trump’s determination to replace him and the administration’s realization that TIllis was not about to back down from his pledge to keep his hold as long as the criminal investigation was ongoing.

“I think they understood if we didn’t get it done today, tomorrow, this week, that he wouldn’t be seated by the time the term expires,” Tillis said of the administration.

There is not the same pressure to fill the AG post. Todd Blanche, who was confirmed last year as deputy attorney general, is now serving as acting attorney general, and he is free under federal law to serve at least into late October.

Some argue he could essentially serve indefinitely, with many pointing to the tenure of former Deputy Labor Secretary Julie Su, who served as acting secretary for nearly two years under former President Joe Biden.

That could effectively mean Trump could wait out Tillis, who is retiring and will relinquish his seat in January — though that would also risk a potential Democratic midterm takeover of the Senate majority.

Tillis said Wednesday he would be sticking to his principles regardless of how the attorney general vacancy plays out. He said his fight to protect Powell and how it was resolved this week was “very important” for ensuring the Federal Reserve’s independence.

Tillis also linked the months-long fight to another hotly debated topic: the fate of the chamber’s 60-vote legislative filibuster that Trump wants to see axed. Like most GOP senators, Tillis wants it to stay.

“Then a simple majority would have been enough to discharge [Warsh] from committee,” Tillis said, noting that the organization of the Senate — including the makeup of committees — is done by consensus due to the filibuster.

Tillis is in a unique position. Due to his impending retirement, he is free of political consequences, and he’s on a host of key committees that give him an outsized role in several of the administration’s priorities. He has been increasingly outspoken about decisions within the Trump administration and from corners of the party he disagrees with — though he’s been careful to stress that he believes he has a respectful relationship with Trump and wants him to be successful.

Trump, for his part, suggested Tillis had already left the Senate in a Fox News interview last week where he was pressed on the Warsh blockade: “You know Thom Tillis is no longer a senator, right? He quit.” Tillis quipped back at the time, “I’m not dead yet.”

On Wednesday, Tillis urged the administration to share more information with Congress on its Iran strategy, questioned whether a “first-semester law student” would believe the indictment of former FBI Director James Comey was credible and urged the House to “recognize reality” and end the Department of Homeland Security shutdown.

“We own the shutdown right now because we can’t get the House to vote on something that 100 senators voted on,” Tillis said. “The American people are not dumb, and they know that the holdup now is not Democrats in the House. It’s Republicans.”

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Republicans unlock filibuster-skirting power to pump billions of dollars to ICE

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House Republicans succeeded late Wednesday in harnessing the special budget power to advance up to $75 billion for the immigration enforcement agencies Democrats refuse to fund without new guardrails — bringing Congress closer to ending the Department of Homeland Security shutdown.

The vote was held open for more than five hours as lawmakers sought concessions from Speaker Mike Johnson around the farm bill, using the budget resolution as leverage. Finally, the chamber voted 214-212-1 to approve the fiscal blueprint the Senate advanced last week, unlocking the ability to draft and pass a party-line package containing tens of billions of dollars for Immigration and Customs Enforcement and Border Patrol.

Rep. Kevin Kiley, a California Independent, voted “present.”

President Donald Trump wants the final producton his desk by June 1, completing one step in the two-part plan to resolve the DHS funding lapse that began more than 10 weeks ago.

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Congress

House vote hits 2-hour mark amid revolts

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Speaker Mike Johnson is fighting multiple separate revolts within his party while the vote on the Senate-backed budget resolution has been held open for nearly two hours.

Johnson has spent Wednesday trying to push a series of legislative priorities through his chamber, including the farm bill as well as the budget framework, which would set up a path for funding immigration enforcement amid a shutdown of the Department of Homeland Security.

Midwest and farm-state Republicans have so far withheld their votes for the budget measure in a revolt over Johnson agreeing to decouple a measure from the farm bill that would have allowed year-round sales of E15—an ethanol-gasoline blend.

A large huddle of lawmakers on the floor with Johnson erupted in yelling at the speaker before he moved the meeting off the floor and out of earshot of reporters.

“Farm people want a farm vote. And corn-belt people want [renewable fuel standard] changes. So we’re trying to work through it,” House Budget Chair Jodey Arrington (R-Texas) explained. Those issues are not directly related to the budget resolution currently on the floor.

A separate group, made up of GOP hard-liners and rallied by Rep. Chip Roy (R-Texas), stayed on the floor, arguing loudly with leadership staff and Arrington and racking up votes against the budget plan.

“We’re gonna have a big family meeting in here. We’ll get everybody on the same page,” Johnson told reporters as both groups eventually gathered in his office.

The House chamber emptied of lawmakers and the clock continued to tick up on the open vote.

“That’s the best way to have — get people to negotiate,” Johnson said of the open vote.

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