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Washington: Navy Secretary John Phelan has been dismissed, according to a U.S. official and a knowledgeable source. This marks another significant personnel shakeup at the Pentagon amid ongoing military leadership changes, just weeks after Defense Secretary Pete Hegseth removed the Army’s top general.
The Pentagon issued a brief statement confirming his departure, stating he was leaving the administration “effective immediately.” No further details or reasons for his exit were provided.
First reported by Reuters, sources who requested anonymity indicated that Phelan’s ousting was partly due to his slow progress in implementing reforms to accelerate shipbuilding and due to strained relationships with key Pentagon leaders. The sources pointed to conflicts with Hegseth, Hegseth’s deputy Steve Feinberg, and Navy Deputy Secretary Hung Cao, who is now expected to serve as acting Navy Secretary. Additionally, an ethics investigation into Phelan’s office was cited as a possible factor.
Phelan, a billionaire reportedly close to President Donald Trump, is the first service secretary appointed by the current administration to be replaced since Trump’s return to office last year.
His departure aligns with broader upheaval within the Pentagon’s leadership under Hegseth’s oversight, including the previous year’s firing of the Chairman of the Joint Chiefs of Staff, Air Force General CQ Brown, as well as the chiefs of naval operations and the Air Force vice chief of staff.
On April 2, Hegseth also dismissed Army Chief of Staff Randy George without publicly explaining the reasoning. Two U.S. officials suggested this decision was related to tensions between Hegseth and Army Secretary Daniel Driessol.
Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, characterized Phelan’s dismissal as “troubling,” expressing concern about the ongoing instability and dysfunction at the Department of Defense, which he attributed to the policies of President Trump and Secretary Hegseth.
This leadership change comes amid a tense ceasefire with Iran, as the U.S. increases its naval presence in the Middle East. The U.S. military relies heavily on naval assets to enforce a blockade against Iran, which President Trump hopes will push Tehran to negotiate an end to the conflict under America’s terms.
The Navy faces mounting pressure to expand its fleet. China’s shipbuilding capabilities now surpass those of the U.S., which was once the global leader in naval power.
For fiscal year 2027, Trump’s proposed $1.5 trillion defense budget includes over $65 billion allocated for the purchase of 18 warships and 16 support vessels built by General Dynamics and Huntington Ingalls Industries. This initiative is part of what the Pentagon calls the “Golden Fleet” plan, projected to be the largest shipbuilding effort since 1962.
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