The U.S. Senate passed a $9 billion federal budget reduction package on July 16, 2025, incorporating proposals from billionaire Elon Musk, aimed at streamlining government spending.
The legislation, approved by a narrow 51-49 vote, targets inefficiencies in defense and energy sectors, aligning with Musk’s advocacy through his role as an informal advisor to President Donald Trump. The cuts include $4 billion from renewable energy subsidies and $3 billion from military procurement, reflecting Musk’s focus on reducing what he calls “wasteful bureaucracy.”
The move follows Trump’s re-election push, with Musk’s influence growing after his companies, Tesla and SpaceX, reported $50 billion in profits in 2024. Supporters argue the cuts will spur private innovation, though critics, including Senator Elizabeth Warren, warn of job losses, projecting 20,000 in renewable sectors, and weakened national security.
The finance card above shows the SPY index at 624.05 USD, a slight dip from its year-high of 627.86 USD, suggesting market caution. The bill now heads to the House, where passage remains uncertain amid partisan divides, with implementation slated for 2026 if approved.