Defense Secretary Pete Hegseth ousted Navy Secretary John Phelan Wednesday, giving him the choice to resign or be fired, six sources told CNN. The Pentagon announced the departure as effective immediately, with no explanation provided.
A person familiar with the situation told Axios that Phelan “didn’t understand he wasn’t the boss” and that he and Hegseth “did not get along.” Sources said Hegseth believed Phelan was moving too slowly on shipbuilding reforms and was also irritated by Phelan’s direct communication with Trump, which Hegseth viewed as an attempt to bypass him.
Navy Undersecretary Hung Cao will serve as acting Navy secretary. A senior White House official told CNN Trump was aware of the decision.
The firing comes as the Navy is currently enforcing one of its largest operations in decades: the blockade of Iranian ports in the Strait of Hormuz.
Phelan is a businessman and major Republican donor with no prior military service, confirmed as Navy secretary in 2025. It is the first ouster of a military service secretary under Trump’s current term — part of a broader pattern of Hegseth removing senior Pentagon officials since taking office. Fox News reports he is the 34th officer fired by Secretary Hegseth.