The U.S. Navy's top civilian leader has been removed from his position after escalating conflicts with Defence Secretary Pete Hegseth over the Pentagon's shipbuilding priorities and naval deployment strategies, according to multiple sources familiar with the situation.
John Phelan's firing was announced Wednesday through a Pentagon statement, catching lawmakers and military officials off guard. Undersecretary Hung Cao will assume the role of acting Navy secretary.
"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," Pentagon spokesperson Sean Parnell said in a statement.
The sudden dismissal appeared to surprise even Phelan himself. According to multiple officials, Phelan discovered his termination by reading the Pentagon's public announcement on social media—though a senior administration official later claimed Phelan had been notified beforehand.
Shipbuilding Disagreements at Core of Conflict
The primary source of friction centered on the pace and approach to naval shipbuilding, a priority that has drawn direct presidential attention. Disagreements also emerged over Trump's "Golden Fleet" initiative and the global deployment of American naval vessels.
Deputy Secretary Stephen Feinberg had already begun taking control of some shipbuilding decisions away from Phelan's authority, according to officials familiar with the internal dynamics.
"President Trump and Secretary Hegseth agreed new leadership at the Navy is needed," a senior administration official stated. "Secretary Hegseth informed John Phelan of this news prior to it being made public."
The timing of Phelan's removal raised eyebrows among members of Congress and Pentagon staff. The dismissal occurred while the United States maintains a naval blockade in the Strait of Hormuz, where American forces have seized two vessels. Iran has characterized the seizure as a violation of an existing ceasefire arrangement.
Recent Naval Initiatives Under Phelan
Despite the rocky end to his tenure, Phelan had supported administration priorities in recent months. Last December, he announced a new class of battleships branded as "Trump-class battleships" during an event at President Trump's Mar-a-Lago estate.
Earlier in his term, Phelan also reversed the demotion of Texas Representative Ronny Jackson, who had been stripped of his rank in 2022 following an investigation into his conduct during his time as White House physician.
The Senate had confirmed Phelan in March 2025 on a 62-30 vote. On the day of his firing, Phelan had spent much of the afternoon on Capitol Hill discussing shipbuilding details with lawmakers, reportedly unaware that his departure was imminent.
This story was adapted from reporting by NBC News. Read the original article at NBC News.