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Musk announces forming of ‘America Party’ in further break from Trump

Trump earlier this week threatened to cut off the billions of dollars in subsidies that Musk’s companies receive from the federal government.

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The tattered bromance between Republican President Donald Trump and his main campaign financier Elon Musk took another fractious turn on Saturday when the space and automotive billionaire announced the formation of a new political party, saying Trump’s “big, beautiful” tax bill would bankrupt America.

A day after asking his followers on his X platform whether a new U.S. political party should be created, Musk declared in a post on Saturday that “Today, the America Party is formed to give you back your freedom.”

“By a factor of 2 to 1, you want a new political party and you shall have it!” he wrote.

The announcement from Musk comes after Trump signed his self-styled “big, beautiful” tax-cut and spending bill into law on Friday, which Musk fiercely opposed.

Musk, who became the word’s richest man thanks to his Tesla car company and his SpaceX satellite firm, spent hundreds of millions on Trump’s re-election and led the Department of Government Efficiency from the start of the president’s second term aimed at slashing government spending.

The two have since fallen out spectacularly over disagreements about the bill.

Musk said previously that he would start a new political party and spend money to unseat lawmakers who supported the bill.

Trump earlier this week threatened to cut off the billions of dollars in subsidies that Musk’s companies receive from the federal government.

Republicans have expressed concern that Musk’s on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.

Asked on X what was the one thing that made him go from loving Trump to attacking him, Musk said: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”

He referenced the growth of Greece from subjugation to preeminence in the ancient world in another tweet, saying: “The way we’re going to crack the uniparty system is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield.”

There was no immediate comment from Trump or the White House on Musk’s announcement.

The feud with Trump, often described as one between the world’s richest man and the world’s most powerful, has led to several precipitous falls in Tesla’s share price.

The stock soared after Trump’s November reelection and hit a high of more than $488 in December, before losing more than half of its value in April and closing last week out at $315.35.

Despite Musk’s deep pockets, breaking the Republican-Democratic duopoly will be a tall order, given that it has dominated American political life for more than 160 years, while Trump’s approval ratings in polls in his second term have generally held firm above 40 percent, despite often divisive policies.

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Top US, Israeli generals meet at Pentagon amid soaring Iran tensions

The officials did not offer details about the closed-door discussions between U.S. General Dan Caine, the chairman of the Joint Chiefs of Staff, and Eyal Zamir, the Israeli armed forces chief of staff.

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The top U.S. and Israeli generals held talks at the Pentagon on Friday amid soaring tensions with Iran, two U.S. officials told Reuters on Sunday, speaking on condition of anonymity, Reuters reported.

The officials did not offer details about the closed-door discussions between U.S. General Dan Caine, the chairman of the Joint Chiefs of Staff, and Eyal Zamir, the Israeli armed forces chief of staff. The meeting has not been previously reported.

The United States has ramped up its naval presence and hiked its air defences in the Middle East after President Donald Trump repeatedly threatened Iran, trying to pressure it to the negotiating table. Iran’s leadership warned on Sunday of a regional conflict if the U.S. were to attack it, read the report.

Israeli Defence Minister Israel Katz on Sunday met with Zamir after his talks in Washington, Katz’s office said, to review the situation in the region and the Israeli military’s “operational readiness for any possible scenario.”

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Israeli attacks kill 31 Palestinians in Gaza, including children

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At least 31 Palestinians, including six children, were killed in Israeli attacks on Gaza City and Khan Younis since early Saturday, according to medical sources cited by Al Jazeera.

The strikes came a day before Israel is scheduled to reopen the Rafah crossing between Gaza and Egypt on Sunday, marking the first reopening of the border crossing since May 2024.

Gaza’s Government Media Office said that more than 500 Palestinians have been killed by Israeli forces since a United States-brokered ceasefire came into effect on October 10.

According to local health authorities, Israel’s military campaign in Gaza has killed at least 71,769 Palestinians and wounded 171,483 others since it began in October 2023. In Israel, at least 1,139 people were killed during the Hamas-led attacks on October 7, 2023, with approximately 250 people taken captive.

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Guterres warns of UN’s ‘imminent financial collapse’

In his letter, Guterres said “decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced.”

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The U.N. chief has told member states the organisation is at risk of “imminent financial collapse,” citing unpaid fees and a budget rule that forces the global body to return unspent money, a letter seen by Reuters on Friday showed.

U.N. Secretary-General Antonio Guterres has repeatedly spoken about the organisation’s worsening liquidity crisis but this is his starkest warning yet, and it comes as its main contributor the U.S. is retreating from multilateralism on numerous fronts.

“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote in a letter to ambassadors dated January 28.

The U.S. has slashed voluntary funding to U.N. agencies and refused to make mandatory payments to its regular and peacekeeping budgets.

U.S. President Donald Trump has described the U.N. as having “great potential” but said it is not fulfilling that, and he has launched a Board of Peace which some fear could undermine the older international body.

Founded in 1945, the U.N. has 193 member states and works to maintain international peace and security, promote human rights, foster social and economic development, and coordinate humanitarian aid.

In his letter, Guterres said “decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced.”

He did not say which state or states he was referring to, and a U.N. spokesperson was not immediately available for comment.

Under U.N. rules, contributions depend on the size of the economy of each member state. The U.S. accounts for 22% of the core budget followed by China with 20%.

But by the end of 2025 there was a record $1.57 billion in outstanding dues, Guterres said, without naming the nations that owed them.

“Either all Member States honour their obligations to pay in full and on time – or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” he said.

U.N. officials say the U.S. currently owes $2.19 billion to the regular U.N. budget, another $1.88 billion for active peace-keeping missions and $528 million for past peace-keeping missions.

The U.S. State Department did not immediately respond to a request for comment on the Guterres letter.

Guterres launched a reform task force last year, known as UN80, which seeks to cut costs and improve efficiency. To that end, states agreed to cut the 2026 budget by around 7% to $3.45 billion.

Still, Guterres warned in the letter that the organisation could run out of cash by July.

One of the problems is a rule now seen as antiquated whereby the global body has to credit back hundreds of millions of dollars in unspent dues to states each year.

“In other words, we are trapped in a Kafkaesque cycle expected to give back cash that does not exist,” said Guterres, referring to author Franz Kafka who wrote about oppressive bureaucratic processes.

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