John Phelan, a prominent MAGA donor with no prior military experience, has been removed from his position as US Navy Secretary amid reports of a falling out with Defence Secretary Pete Hegseth. A Pentagon spokesperson confirmed on Wednesday that Phelan left his role immediately after disagreeing with Hegseth and Deputy Secretary Stephen Feinberg on several issues, including the revitalisation of the Navy's shipbuilding programme.
A senior administration official told The Independent that President Donald Trump and Hegseth agreed that new leadership was required at the Navy. Hegseth informed Phelan of the decision before it became public.
Background of John Phelan
Phelan, a Harvard and LSE graduate, built a career in finance as co-founding partner and chief investment officer of MSD Capital, a private investment firm. He resigned in 2022 to establish Rugger Management LLC in Palm Beach, Florida. In August 2024, he hosted a fundraising dinner for Trump at his Colorado home, with attendees paying a minimum of $25,000, as reported by The Guardian.
Flight logs from the Jeffrey Epstein files suggest Phelan flew on the disgraced financier's plane, though CNN noted that mention in the files does not imply wrongdoing.
Phelan was sworn in as the 79th US Secretary of the Navy in March 2025, shortly after Trump's re-election. Trump praised him as a "tremendous force" who would prioritise the business of the Navy. According to the Wall Street Journal, Phelan had a close relationship with the president, often texting late at night about shipbuilding. Senior Pentagon officials were reportedly frustrated when Phelan took a battleship proposal directly to Trump, bypassing Hegseth.
Political Fallout
Hegseth and Feinberg were reportedly dissatisfied with Phelan's slow pace on shipbuilding reforms, while Feinberg sought control over key responsibilities. Senator Jack Reed, the top Democrat on the Armed Services Committee, called Phelan's dismissal "troubling," especially amid Trump's "war of choice" in Iran, warning it sends the wrong signal to service members, allies, and adversaries.
Other Military Dismissals
Phelan's sacking is part of a broader shake-up under Hegseth. On 3 April, he fired Army Chief of Staff General Randy George, who told troops they deserved "courageous leaders of good character." George was the third top general dismissed in a week, following General David Hodne and Major General William Green Jr. The New York Post reported Hegseth's "paranoia" about being replaced by Army Secretary Dan Driscoll as a motive.
On 27 March, Hegseth reportedly removed four officers—including two women and two Black men—from a promotions list. In October, Lieutenant General Joe McGee was allegedly forced out after tensions over military strategy. President Trump also fired Air Force General Charles Q. Brown as chairman of the Joint Chiefs and removed Navy Admiral Lisa Franchetti in February. By 3 April, 13 military officials had been removed or retired under Trump, according to Axios.
Hegseth has also faced allegations of using a commercial chat app for planning military strikes, which he claims are leaks from subordinates.
