The Pentagon announced on Wednesday that Secretary of the Navy John C. Phelan is departing the administration, “effective immediately.”
“On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy. We wish him well in his future endeavors. Undersecretary Hung Cao will become Acting Secretary of the Navy,” Pentagon spokesman Sean Parnell stated.
STATEMENT:
Secretary of the Navy John C. Phelan is departing the administration, effective immediately.
On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy.
We wish…
— Sean Parnell (@SeanParnellASW) April 22, 2026
CNN has more:
The announcement was particularly shocking for its timing, with the Navy playing a critical role in stopping Iranian ships from traversing the Strait of Hormuz. Thus far, US forces have redirected 31 vessels to return to port and have also boarded two ships.
Multiple sources told CNN there was tension for months between Phelan and Hegseth, who believed Phelan was moving too slowly on implementing shipbuilding reforms and was also irked by Phelan’s direct communication with Trump, which Hegseth viewed as an attempt to bypass him. Deputy Defense Secretary Steve Feinberg also wanted to take control of major responsibilities for shipbuilding and navy acquisitions, a job that would typically be within Phelan’s purview.
It was during a meeting between Trump and Hegseth on shipbuilding at the White House Wednesday that the issues came to a head, according to a senior White House official.
Trump, frustrated by slow shipbuilding progress himself, became convinced during the meeting that Phelan needed to be replaced, and he and his defense secretary resolved to install someone who would move more quickly, the official said. Trump told Hegseth to “take care of it,” because Phelan is subordinate to the defense secretary. Hegseth sent a message to Phelan informing him he needed to resign or be fired, the official said.
The official said Phelan, though, did not appear to believe Trump was aware of the message, and he soon began phoning other White House officials asking if they had heard he had been told to resign and whether they knew if the president was aware of it. It was around then that Parnell issued the statement, the official said.
“Phelan didn’t understand he wasn’t the boss. His job is to follow orders given, not follow the orders he thinks should be given,” one individual told Axios.
The same individual told the outlet that Phelan and Hegseth did not “get along.”
Axios on Secretary of Navy departure: “‘Phelan didn’t understand he wasn’t the boss. His job is to follow orders given not follow the orders he thinks should be given,’ a person familiar with the situation told Axios.
‘He didn’t get along’ with Defense Secretary Pete Hegseth,…— Steve Lookner (@lookner) April 22, 2026
Axios noted:
Phelan sat down with a dozen reporters Tuesday afternoon to discuss the future of the Navy and its major investments, including the Golden Fleet and its battleship and frigate.
“We’re going to really need to improve our ability to build ships,” he said at the time.
Phelan, a longtime financier, was confirmed by the Senate about a year ago.