Navy Secretary John Phelan Departs; Hung Cao Appointed Acting Leader

"Departing the administration, effective immediately." — Pentagon spokesman Sean Parnell

U.S. Navy Secretary John Phelan Departs Unexpectedly

Washington D.C. – April 2, 2025 — U.S. Navy Secretary John Phelan departed his position effective immediately on Wednesday, according to the Pentagon. Pentagon spokesman Sean Parnell announced the departure without providing an official reason. Undersecretary of the Navy Hung Cao, a 25-year Navy veteran, has been appointed acting secretary.

The Departure & Leadership Changes

John Phelan was nominated by President Donald Trump in late 2024 and confirmed by the Senate in March 2025 by a vote of 62-30. Phelan had no prior military service or civilian leadership experience within the Navy. Before his nomination, he was a major donor to Trump's campaign, founded the private investment firm Rugger Management LLC, and helped run the family investment office of billionaire Michael Dell.

Sources familiar with the matter cited internal disputes over shipbuilding reforms and poor relationships with senior Pentagon officials. Reports indicated tensions with Defense Secretary Pete Hegseth, Deputy Defense Secretary Steve Feinberg, and Phelan's own deputy Hung Cao had persisted for months. Some reports noted an ongoing ethics investigation into the Navy Secretary's office, while others mentioned internal disputes as a contributing factor. The Pentagon provided no official reason for the departure.

Phelan's departure follows other recent changes in U.S. federal and military leadership. Earlier in April, Defense Secretary Hegseth asked Army Chief of Staff Gen. Randy George to step down. The Army officers leading the Transportation and Training Command and the Chaplain Corps were also removed. Over the past month, three Cabinet secretaries have left their posts: Attorney General Pam Bondi was fired, and Homeland Security Secretary Kristi Noem and Labor Secretary Lori Chavez-DeRemer have departed.

New Acting Secretary: Hung Cao

Hung Cao, a 25-year Navy veteran, is serving as acting Navy secretary. He is a former special operations officer who retired at the rank of captain. According to his campaign biography, Cao served with SEAL teams in Iraq, Afghanistan, and Somalia. He holds a master's degree in physics and had fellowships at MIT and Harvard. Cao fled Vietnam as a child in the 1970s and graduated from the U.S. Naval Academy.

Cao ran unsuccessful campaigns for the U.S. Senate in Virginia in 2024 and for the U.S. House of Representatives in 2022. In his Senate campaign, he criticized COVID-19 vaccine mandates, diversity, equity, and inclusion (DEI) efforts, and aid to Ukraine. As undersecretary, Cao has supported returning to duty service members who refused a COVID-19 vaccine mandate.

Current Naval Operations

The U.S. Navy is engaged in several ongoing operations. The Navy is enforcing a blockade on Iranian ports at President Trump's direction. A temporary ceasefire between the U.S. and Iran has been in place for approximately two weeks. Administration officials have suggested the Navy could offer escorts to oil tankers in the Strait of Hormuz, a key oil transit chokepoint.

Recent tensions include the U.S. seizure of an Iranian container ship, which Iran described as piracy. Separately, Iran seized two container ships earlier this week. Iran's foreign minister called the U.S. blockade of Iranian ports "an act of war." The White House described Iran's vessel seizures as "piracy" and stated the blockade remains "incredibly effective."

The Department of the Navy also oversees naval forces and the Marine Corps. During Phelan's tenure, the Navy participated in U.S. military strikes on alleged drug boats near Latin America and seizures of oil tankers linked to Venezuela.

Statements

"Troubling... instability in the Department of Defense."
— Senator Jack Reed (D-RI), Senate Armed Services Committee

Pentagon spokesman Sean Parnell expressed gratitude for Phelan's service. Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, criticized the dismissal as "troubling" and part of instability in the Department of Defense. President Trump had previously praised Phelan at the time of his appointment, calling him "one of the most successful businessmen in the country."