Navy Secretary John Phelan is leaving his job, the Pentagon announced Wednesday, making him the first head of a military service to depart during President Donald Trump’s second term.
“Secretary of the Navy John C. Phelan is departing the administration, effective immediately,” said chief Pentagon spokesperson Sean Parnell. “On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy.”
STATEMENT:
Secretary of the Navy John C. Phelan is departing the administration, effective immediately.
On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy.
We wish…
— Sean Parnell (@SeanParnellASW) April 22, 2026
The Pentagon did not disclose the reason for Phelan’s unexpected departure. His exit comes as the Navy plays a central role in U.S. maritime operations tied to tensions with Iran.
According to Reuters, Phelan was dismissed in part because he was seen as moving too slowly to implement reforms aimed at speeding up shipbuilding and because he had strained relationships with key Pentagon officials, including War Secretary Pete Hegseth and Deputy Defense Secretary Steve Feinberg.
The decision to remove Phelan reportedly came after a Wednesday meeting between Trump and Hegseth focused on shipbuilding. Trump, frustrated with the pace of progress, reportedly agreed with Hegseth that “new leadership at the Navy is needed,” a senior administration official told CNN,
“Phelan didn’t understand he wasn’t the boss. His job is to follow orders given, not follow the orders he thinks should be given,” a person familiar with the situation told Axios.
Phelan, a political ally of Trump, was appointed navy secretary in 2024 despite lacking prior military or defense leadership experience.
He was a major donor to Trump’s campaign and founded the private investment firm Rugger Management LLC. According to his biography, his primary exposure to the military came through an advisory role with Spirit of America, a nonprofit that supports assistance efforts in Ukraine and Taiwan.
According to Parnell, Navy Undersecretary Hung Cao will become acting secretary of the Navy.
Cao, 54, enlisted in the Navy as a seaman recruit in 1989 and was later commissioned as a Special Operations Officer from the United States Naval Academy in 1996.
According to his biography, he served as a Navy Diving Officer, leading underwater missions around the world. He also served as an Explosive Ordnance Disposal officer, leading counter–improvised threat operations in support of Special Warfare and Special Forces, with multiple deployments to Iraq, Afghanistan, and Somalia.
In his final tour of duty, he led sensitive activities, exploitation, counter-messaging, and counter-drone operations in support of Geographic Combatant Commanders and Special Operations Command. He retired from active duty in October 2021 at the rank of captain.
Cao previously ran as a Republican candidate for the U.S. Senate in 2022 and for the House of Representatives in 2024, but was unsuccessful in both races.
