The U.S. Department of the Navy Secretary John Phelan has been dismissed, according to a Pentagon statement released on Wednesday, marking another high-level leadership change within the U.S. Department of Defense.
The Pentagon confirmed that Phelan’s departure is “effective immediately” but did not provide any explanation for the decision or clarify whether it was voluntary.
A U.S. official and a source familiar with the matter said Phelan was removed due to concerns over slow progress on naval reform efforts, particularly initiatives aimed at accelerating shipbuilding. The sources also pointed to strained relations with senior Pentagon leadership, including Defence Secretary Pete Hegseth and Deputy Defence Secretary Steve Feinberg, as well as tensions within the Navy’s civilian leadership.
The sources further indicated that an ethics review involving Phelan’s office contributed to the decision. Hung Cao, currently serving as the Navy’s number two civilian official, has been назначed acting Navy Secretary.
Phelan, a billionaire with reported ties to former President Donald Trump, becomes the first service secretary appointed during the current administration to be removed from office since Trump’s return to power last year.
His dismissal comes amid broader leadership changes across the Pentagon under Hegseth, including the removal of several senior military officials in recent months, among them the chairman of the Joint Chiefs of Staff, the Chief of Naval Operations, and the Air Force vice chief of staff.
The shake-up also comes at a sensitive time, with the United States increasing naval deployments in the Middle East during ongoing tensions with Iran. The U.S. military has expanded reliance on maritime assets as part of strategic pressure efforts in the region.
Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, described the move as “troubling,” warning it reflects growing instability within the Defence Department.
The Pentagon has not yet announced a permanent replacement for the position.