April 23, 2026 | 10:49 am
TEMPO.CO, Jakarta - Pentagon announced the surprising departure of US Navy Secretary John Phelan on Wednesday, without mentioning the reason.
"On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy," said Pentagon's chief spokesperson, Sean Parnell, in a statement as reported by Arab News. "We wish him well in his future endeavors."
According to Politico, Phelan's removal was partly due to a highly expensive new warship project which caused friction with his superiors - including Defense Secretary Pete Hegseth.
Phelan, who had been in office for only 13 months, had helped design the new warship to garner support from President Donald Trump, according to two sources familiar with the matter.
Phelan had been an advocate for larger warships, but this clashed with the Pentagon's strategy to shift towards smaller, unmanned vessels that are more affordable, according to the sources.
The large ships supported by Phelan would cost the Pentagon billions of dollars even to begin development, and "not at all aligned with where Hegseth and Feinberg want to go," said the first source.
Phelan had also recently lost some of his key responsibilities, according to a third and fourth source. They said Feinberg had taken over the management of the submarine program, and the Office of Management and Budget was now overseeing shipbuilding efforts.
Phelan was in the White House lobby on Wednesday after the announcement was made, according to someone familiar with the matter. He was also seen on Capitol Hill that day. The White House did not immediately respond to a request for comment.
The Pentagon refused to comment on specific details regarding the warship project. Phelan could not be reached for comment.
Phelan's removal comes a week before Hegseth is scheduled to testify on the proposed $1.5 trillion Pentagon budget. This budget will include significant increases in major Navy programs, including Trump's proposed "Golden Fleet."
Trump Donor
Phelan - one of Trump's major donors - was one of several businessmen appointed by Trump to hold important positions in the Pentagon, along with Feinberg.
He joined a navy plagued by issues in shipbuilding with promises to reform the process. He oversaw the troubled Constellation-class frigate cancellation, along with the announcement of the Trump warship and efforts to consolidate the Navy's admirals.
However, he struggled to get the Navy to increase shipbuilding, a top priority for Trump. Phelan also lost key staff in the past few months.
In October, Hegseth fired Jon Harrison, Phelan's influential chief of staff who had been working to make significant changes to the Navy's policy and budget office. He was also reported to have attempted to limit the deputy secretary's role before Deputy Secretary Hung Cao was confirmed for the position.
Cao, the Navy's second-ranking civilian, will temporarily take over Phelan's role.
Phelan's management of the Navy was "out of touch" in the service, which left Feinberg and Hegseth frustrated, according to the second source. They added that Phelan was left with "low-level people" as advisors.
Hunter Stires, who served as a top Navy advisor in both the Biden and Trump administrations, said Phelan also erred when he indicated an openness to build American warships overseas.
"Phelan’s statements directly undercut a bipartisan strategy championed by the Trump administration to incentivize world class allied shipbuilders to invest in modernizing and expanding shipyards here in the United States," he said.
This sudden departure is the latest in a series of resignations and dismissals of senior officials in the Trump administration, including Interior Secretary Kristi Noem and Attorney General Pam Bondi.
Phelan is the second high-ranking military official to be fired amid the US-Iran war, after Hegseth dismissed Army Chief of Staff General Randy George earlier this month.
Read: Pete Hegseth Recites 'Pulp Fiction' Fake Bible Verse at Pentagon Sermon
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