John Phelan has been removed from his position as US Navy Secretary with immediate effect, according to officials, marking a significant leadership shakeup inside the Pentagon at a time when tensions linked to the Iran conflict remain high. The Pentagon confirmed his departure in a brief statement but did not clarify whether the move was voluntary or forced, nor did it provide an official reason for the decision.
The removal comes amid growing friction within the US defence leadership. Sources indicated that Phelan’s relationship with Pete Hegseth had been strained for months, with disagreements over priorities and pace, particularly regarding shipbuilding reforms intended to expand the US Navy’s fleet. Concerns were raised that Phelan was moving too slowly on implementing these reforms, which are considered critical in the context of rising global naval competition and ongoing military operations.
Tensions were further aggravated by Phelan’s direct communication with Donald Trump, which reportedly bypassed the traditional chain of command. This reportedly frustrated senior Pentagon leadership, including Deputy Defence Secretary Steve Feinberg and Navy official Hung Cao, who is now expected to take over as acting Navy Secretary.
An ethics investigation into Phelan’s office also contributed to the decision, according to sources cited by Reuters. While details of the probe have not been made public, it added to existing concerns about leadership effectiveness and internal coordination.
The situation escalated during a White House meeting focused on shipbuilding, where Trump expressed dissatisfaction with the pace of progress. According to officials, he directed Hegseth to resolve the issue, after which Phelan was asked to resign or face termination. Phelan subsequently sought confirmation and met Trump at the White House, where the decision was finalised.
His dismissal comes during a period of heightened US naval activity, particularly in the Strait of Hormuz, where American forces are enforcing a blockade on Iranian shipping. The US Navy has been actively intercepting and redirecting vessels as part of broader efforts to pressure Tehran during the ongoing conflict and fragile ceasefire.
Phelan’s exit is part of a broader pattern of leadership changes within the Pentagon. Earlier, senior officials including Army Chief of Staff Randy George and generals David Hodne and William Green Jr were also removed, indicating ongoing instability within the defence establishment.
Criticism has followed the move. Senator Jack Reed described the firing as troubling, arguing that it reflects instability and dysfunction within the Department of Defense at a critical time.
Phelan, a billionaire businessman with close ties to Trump and no prior military experience, had been appointed in 2025 after helping raise significant campaign funds. His removal makes him the first service secretary appointed during Trump’s current term to be dismissed.
The leadership change also comes as the US attempts to scale up its naval capabilities in response to strategic competition, particularly with China. The administration has proposed a major defence budget increase, including substantial funding for new warships under the “Golden Fleet” initiative, signalling a push to strengthen maritime dominance amid rising geopolitical tensions.
