The Pentagon confirmed Wednesday that Navy Secretary John C. Phelan is departing the administration “effective immediately,” with Deputy Secretary Hung Cao stepping in as Acting Secretary of the Navy. The announcement followed a critical White House meeting where President Trump reportedly determined Phelan’s leadership was inadequate for accelerating shipbuilding reforms, according to a senior official.
The timing has drawn sharp scrutiny given the Navy’s recent role in securing the Strait of Hormuz by redirecting 31 vessels and boarding two Iranian ships. Multiple sources indicate months of tension between Phelan and Defense Secretary Hegseth over implementation delays of naval vessel construction and disputes about communication channels with the president.
A White House official stated Trump became convinced during a Wednesday meeting that Phelan needed replacement due to slow progress on shipbuilding, directing Hegseth to resolve the issue. Hegseth reportedly instructed Phelan to resign or be fired, though sources suggest Phelan remained unaware of the directive and began contacting White House officials to confirm its existence.
Phelan’s departure follows his recent public discussion with reporters about the urgent need to bolster U.S. shipbuilding capacity, including the “Golden Fleet” program for battleships and frigates. A longtime financier, Phelan was confirmed by the Senate approximately a year ago.
