John Phelan has been removed as U.S. Navy secretary, according to multiple reports, marking the latest high-level leadership change at the Pentagon amid overseas military tension.
The Pentagon confirmed Phelan’s departure in a brief statement, saying he was leaving the administration effective immediately. No official reason was provided.
Reuters, citing unnamed U.S. officials and sources familiar with the matter, reported Phelan was dismissed in part over concerns that reforms to speed up shipbuilding were moving too slowly. Sources also said he had strained relationships with Pete Hegseth, Deputy Defense Secretary Steve Feinberg and other senior Pentagon officials.
One source also cited an ethics investigation involving Phelan’s office.
Phelan, a billionaire businessman with close ties to Donald Trump, was the first service secretary appointed by the administration to be fired since Trump returned to office last year.
The Pentagon said Hung Cao, the Navy’s No. 2 civilian official, will serve as acting Navy secretary.
Phelan’s firing comes during heightened tensions in the Middle East, where the United States has increased naval deployments as part of pressure efforts against Iran. U.S. naval forces have taken a central role in enforcing a blockade intended to push Tehran toward negotiations.
The dismissal also follows broader upheaval within the Defense Department under Hegseth’s leadership. Recent personnel changes have included the removal of senior officers such as former Joint Chiefs Chairman C.Q. Brown and other top military leaders.
On April 2, Hegseth also fired Army Chief of Staff Randy George without publicly stating a reason.
Jack Reed, the top Democrat on the Senate Armed Services Committee, criticized the move, saying it reflected instability within the department.
The Navy remains under pressure to expand and modernize its fleet as the U.S. responds to growing maritime competition from China, whose shipbuilding capacity now far exceeds that of the United States.
Trump’s proposed $1.5 trillion defense budget for fiscal year 2027 includes more than $65 billion for 18 warships and 16 support vessels under what officials have called the “Golden Fleet” initiative.
Source: Reuters