US Navy Secretary John Phelan Fired Amid Pentagon Shakeup, Sources Say

US Navy Secretary John Phelan has been dismissed, according to a US official and a person familiar with the matter, marking another major leadership shakeup within the Pentagon.

The Pentagon confirmed his departure in a brief statement, stating that he was leaving the administration “effective immediately.” However, officials did not clarify whether the decision was voluntary or forced.

His dismissal was first reported by Reuters.

Sources speaking on condition of anonymity said Phelan was removed partly due to concerns that he was progressing too slowly on reforms aimed at accelerating naval shipbuilding. He was also reported to have strained relationships with senior Pentagon leadership.

According to one source, tensions included disagreements with Defence Secretary Pete Hegseth, Deputy Steve Feinberg, and Navy official Hung Cao, who is now expected to serve as acting Navy Secretary. The source also pointed to an ongoing ethics investigation linked to Phelan’s office.

Phelan, a billionaire with reported ties to President Donald Trump, is the first service secretary appointed under the current administration to be dismissed since Trump returned to office.

His departure comes amid broader instability within the Pentagon’s leadership structure under Hegseth, including multiple high-level dismissals across military branches.

Senator Jack Reed described the firing as “troubling,” expressing concern over instability within the Department of Defence.

The decision also comes at a sensitive time, as the US increases naval deployments in the Middle East during a tense ceasefire involving Iran. The Navy is currently playing a central role in strategic pressure operations in the region.

Meanwhile, the US faces growing pressure to expand its naval capabilities as China’s shipbuilding industry continues to surpass American output. The proposed $1.5 trillion defence budget includes major investments in warships under the “Golden Fleet” initiative, described as the largest US shipbuilding effort in decades.