President Trump is replacing his Secretary of the Navy as the blockade of the Strait of Hormuz continues as a key chokepoint in the war against Iran.
John Phelan is leaving, effective immediately, and Undersecretary Hung Cao will become Acting Secretary of the Navy, the Pentagon said Wednesday in a surprise announcement. No reason was given for his departure.
“Secretary of the Navy John C. Phelan is departing the administration, effective immediately,” Pentagon spokesman Sean Parnell announced. “We wish him well in his future endeavors.”
Phelan addressed the Navy’s annual conference in Washington, D.C. on Tuesday and spoke to reporters about his plans to ramp up shipbuilding in the service.
“One of the things we are going to do in our contracting is if you beat schedule, you’re going to get a bonus, but you’re going to share it with the workers,” Phelan said.
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Phelan is one of the country’s top art collectors and ran a massive private investment firm.
A top GOP donor, he’s given more than $1.8 million to help elect Republicans. His name also appeared on the flight manifest for Jeffrey Epstein’s private plane. He only appeared on one flight – that traveled from London to New York – and denied any knowledge of Epstein’s crimes.
Cao, a Navy veteran and failed Virginia Senate candidate, is well-liked by the president.
The secretary of the Navy oversees more than 900,000 people and an annual budget of more than $210 billion.
But the role of late has had one major task: leading the Strait of Hormuz blockade. The Navy is the lead military branch on that mission.
The Strait is essentially in lockdown as the US and Iran remain in a stalemate on peace talks.
Cao is a Vietnamese refugee who came to Virginia as a child and graduated from the US Naval Academy. He was in the service for 25 years with postings in Iraq, Afghanistan and Somalia.
Trump praised his personal story and his military experience when he announced Cao’s nomination for undersecretary.
“Hung is the embodiment of the American Dream. As a refugee to our Great Nation, Hung worked tirelessly to make proud the Country that gave his family a home,” the president said.
Cao was confirmed to the undersecretary job by a 52-45 vote in the Senate. He has taken a tough stance on the makeup of the military, saying the country needs “alpha” leaders in its service.
“What we need is alpha males and alpha females who are going to rip out their own guts, eat them and ask for seconds,” he said in 2024.
His alpha personality is a good fit for a Pentagon operating under Secretary of War Pete Hegeseth, who has dismissed diversity, equity and inclusion elements in the armed forces.
Trump endorsed Cao when he challenged Sen. Tim Kaine (D-Va.) in 2024. But Kaine won easily by 16 points. The senator did not support Cao’s nomination for undersecretary.
Phelan was the first person in 15 years to lead the Navy without having served in any branch of the armed forces. His Rugger Management LLC private investment firm is based in Palm Beach Fla., where Trump lives.
He came into the job as the Navy was experiencing problems in its shipbuilding department. During his tenure, he announced a new class of battleship named for Trump.