Navy Secretary John Phelan ousted due to tensions with Hegseth, sources report

Navy Secretary John Phelan Removed Amid Rising Tensions

Navy Secretary John Phelan has been dismissed following months of mounting tensions with key Pentagon leaders. Reports indicate that both Army Secretary Pete Hegseth and Deputy Defense Secretary Steven Feinberg expressed serious concerns regarding Phelan’s ability to lead effectively. One significant moment of conflict occurred in October 2025 when Hegseth terminated Phelan’s chief of staff, John Harrison.

There were worries about how Phelan was handling a large shipbuilding initiative, which contributed to the frustration among his colleagues. Yet, in a public statement on Truth Social, President Trump seemed to take a different stance, showing support for Phelan. He referred to Phelan as a long-term friend and praised his previous work, saying, “John helped my administration rebuild Sleepy Joe Biden’s Navy, which was rapidly depleted.” Trump expressed interest in having Phelan return in the future, a statement that contrasts with the experiences shared by administration insiders.

A senior official mentioned that Trump and Hegseth had reached a consensus that the Navy needed new leadership. Hegseth reportedly informed Phelan of his dismissal prior to the official announcement by Pentagon Press Secretary Sean Parnell.

This leadership change comes at a particularly sensitive moment, with rising tensions related to the closure of the Strait of Hormuz, a critical global oil route facing threats. President Trump has also declared the Navy to be in “wartime status” to boost shipbuilding efforts.

Phelan, a billionaire who had a history as a Trump fundraiser, recently hosted a bridal shower for Donald Trump Jr. at Mar-a-Lago. Some insiders suggested that personal dynamics played a role in the strife, noting Hegseth’s frustrations with Phelan’s tendency to bypass him and communicate directly with Trump.

Phelan declined to comment when approached and efforts to reach Hegseth’s team for insights were unsuccessful. His removal marks the second high-profile ouster within the Pentagon this month, following Army Chief of Staff Randy George. It also follows a wider reshuffle among cabinet members, including several significant figures who left their posts in March.

Increasingly, the Navy has faced pressure to deal with ongoing shipbuilding difficulties. The flagship Columbia-class submarine project, which is reportedly behind schedule, continues to encounter financial challenges, with delays pushing expected deliveries back to 2029.

Even though Phelan prioritized shipbuilding during his tenure, major programs experienced setbacks. He had initiated reviews and sought changes to expedite production, including a substantial investment to automate submarine building. Tension escalated as Feinberg sought to centralize oversight on major projects, sometimes limiting Phelan’s influence.

Recently, Phelan raised eyebrows by mentioning that the Navy might consider outsourcing shipbuilding due to capacity issues. “Everything is on the table,” he noted at a conference, suggesting a willingness to explore various options.

Hung Kao has stepped in as Acting Vice-Secretary of the Navy following Phelan’s departure. Unlike Phelan, who came from a business background, Kao is a retired Navy captain with over 20 years of military experience, including roles in Iraq and Afghanistan, before transitioning to political life.