Secretary of the Navy John Phelan was fired Wednesday after months of feuding with his Pentagon bosses, particularly over his handling of President Trump’s “Golden Fleet” shipbuilding initiative.
Tensions between Phelan, War Secretary Pete Hegseth and Deputy War Secretary Stephen Feinberg had been simmering for months, according to the New York Times and a Republican source.
Phelan didn’t get along with Pentagon brass and his management and leadership style was “incongruent” with Hegseth and Feinberg, one GOP source familiar with the fired Navy secretary’s standing at the Pentagon told The Post.
“The administration really wanted to accelerate the shipbuilding program because of the president’s agenda … and the secretary seemed incapable of accomplishing those goals, and he wasn’t well-liked,” the source said. “When you combine incompetence with arrogance, it usually doesn’t end well.”
Feinberg had been gradually diverting responsibility for the major project away from Phelan, the New York Times reported.
The secretary had also butted heads with Hung Cao, the under secretary who is now set to replace him, officials told the outlet.
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Phelan is leaving, effective immediately, and Cao will become Acting Secretary of the Navy, the Pentagon said Wednesday. No reason was given for his departure.
“Secretary of the Navy John C. Phelan is departing the administration, effective immediately,” Pentagon spokesman Sean Parnell announced. “We wish him well in his future endeavors.”
A senior administration official told The Post that Trump and Hegseth both agreed it was time to replace Phelan.
“President Trump and Secretary Hegseth agreed new leadership at the Navy is needed,” the official said. “Secretary Hegseth informed John Phelan of this news prior to it being made public.”
Phelan addressed the Navy’s annual conference in Washington, D.C. on Tuesday and spoke to reporters about his plans to ramp up shipbuilding in the service.
“One of the things we are going to do in our contracting is if you beat schedule, you’re going to get a bonus, but you’re going to share it with the workers,” Phelan said.
Phelan is one of the country’s top art collectors and ran a massive private investment firm.
A top GOP donor, he’s given more than $1.8 million to help elect Republicans. His name also appeared on the flight manifest for Jeffrey Epstein’s private plane. He only appeared on one flight – that traveled from London to New York – and denied any knowledge of Epstein’s crimes.
Cao, a Navy veteran and failed Virginia Senate candidate, is well-liked by the president. One GOP source said he expected Cao to excel in the new role and that the military operation against Iran would have no disruptions with the change in leadership.
The secretary of the Navy oversees more than 900,000 people and an annual budget of more than $210 billion.
But the role of late has had one major task: leading the Strait of Hormuz blockade. The Navy is the lead military branch on that mission.
The Strait is essentially in lockdown as the US and Iran remain in a stalemate on peace talks.
Cao is a Vietnamese refugee who came to Virginia as a child and graduated from the US Naval Academy. He was in the service for 25 years with postings in Iraq, Afghanistan and Somalia.
Trump praised his personal story and his military experience when he announced Cao’s nomination for undersecretary.
“Hung is the embodiment of the American Dream. As a refugee to our Great Nation, Hung worked tirelessly to make proud the Country that gave his family a home,” the president said.
Cao was confirmed to the undersecretary job by a 52-45 vote in the Senate. He has taken a tough stance on the makeup of the military, saying the country needs “alpha” leaders in its service.
“What we need is alpha males and alpha females who are going to rip out their own guts, eat them and ask for seconds,” he said in 2024.
His alpha personality is a good fit for a Pentagon operating under Hegeseth, who has dismissed diversity, equity and inclusion elements in the armed forces.
Trump endorsed Cao when he challenged Sen. Tim Kaine (D-Va.) in 2024. But Kaine won easily by 16 points. The senator did not support Cao’s nomination for undersecretary.
Phelan was the first person in 15 years to lead the Navy without having served in any branch of the armed forces. His Rugger Management LLC private investment firm is based in Palm Beach Fla., where Trump lives.
