Navy Secretary John Phelan out, Pentagon says

by · UPI

April 22 (UPI) -- John Phelan is out as Navy secretary, "effective immediately," the Pentagon said Wednesday evening.

"We are grateful to Secretary Phelan for his service to the Department and the United States Navy," chief Pentagon spokesman Sean Parnell said on a brief post on X.

"We wish him well in his future endeavors."

Parnell's statement said that Undersecretary Hung Cao will become acting secretary.

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No reason for Phelan's departure was provided, but he was reportedly forced to leave the position over disagreements with Defense Secretary Pete Hegseth, The New York Times, CNN and Axios reported, each citing unidentified sources familiar with the situation. The Times reported that Phelan had clashed with Hegseth and Deputy Defense Secretary Stephen Feinberg, as well as his replacement, Cao.

The departure comes in the middle of a dramatic day for the United States' blockade of Iranian ports as Iran attacked and seized two cargo ships in the Strait of Hormuz.

Phelan's departure also comes in the wake of other U.S. military shakeups. Hegseth forced out Army Chief of Staff Gen. Randy George and other Army generals earlier in April.

Hegseth also fired Phelan's chief of staff, Jon Harrison, last fall, as well as many other U.S. military figures.

Before becoming Navy secretary in March 2025, Phelan ran a private investment firm, was a noted art collector and had no prior military experience.

In nominating Phelan for the Navy's top post shortly after winning the presidency in November 2024, President Donald Trump championed Phelan's business acumen.

"His Record of Success speaks for itself -- a true Champion of American Enterprise and Ingenuity!" Trump said in an online statement.

"His incredible knowledge and experience will elevate the lives of the brave Americans who serve our Nation."

On Tuesday, Phelan said in a post on X that the future of the Navy will include a mix of manned and unmanned systems. "This is how we maintain control of the seas and project power where it matters," he wrote.

The Navy also released its 2027 budget on Tuesday. The spending plan of $377.5 billion marks an increase of $70 billion and is "focused on restoring American maritime dominance," a press release said.

"This is a strategy-driven budget," Phelan said in the release. "It's not about business as usual -- it's about making generational investments in real, usable capability for our warfighters."