Navy secretary departs immediately as undersecretary takes over in acting role

A sudden shakeup at the Pentagon has left the U.S. Navy without its top civilian leader, and an acting official is stepping in immediately.

Chief Pentagon spokesman Sean Parnell said in a post on X Wednesday that Secretary of the Navy John C. Phelan is leaving his post.

“Secretary of the Navy John C. Phelan is departing the administration, effective immediately. 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,” Parnell wrote. 

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“We wish him well in his future endeavors. Undersecretary Hung Cao will become Acting Secretary of the Navy.”

Fox News Digital has reached out to Phelan’s office for comment.

War Secretary Pete Hegseth fired Navy Secretary John C. Phelan without explanation, according to multiple sources familiar with the decision.

Phelan and his wife, Amy, are friends with President Donald Trump’s family and have longstanding ties to Palm Beach, Florida. As recently as last weekend, Amy Phelan hosted a bridal shower at Mar-a-Lago for Donald Trump Jr.’s fiancée.

His biography on the U.S. Navy’s website shows Phelan was sworn in as the 79th secretary of the Navy in March 2025, overseeing nearly 1 million sailors, Marines, reservists and civilian personnel, along with a budget of more than $260 billion.

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His priorities included strengthening shipbuilding, bolstering the maritime industrial base and improving readiness, training and overall quality of life for service members.

Before entering government, Phelan built a career in private equity and investment management. He is the founder and chairman of Rugger Management, a Palm Beach-based investment firm.

Phelan previously co-founded MSD Capital, the investment firm for Dell Technologies founder Michael Dell, and helped lead MSD Partners, which managed assets for outside investors. Under his leadership, the firm generated more than $20 billion in profits and grew assets under management to over $30 billion.

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Phelan holds an MBA from Harvard Business School and graduated Phi Beta Kappa from Southern Methodist University, where he earned a degree in economics and political science.

His academic background also includes studies in economics and international relations at the London School of Economics.

In addition to his business career, Phelan has been involved in a number of philanthropic and national security-related organizations.

He previously served as chairman of the board of the Third Option Foundation and has been affiliated with groups such as Business Executives for National Security.

His work has also included roles supporting academic institutions, including Harvard Business School and SMU, and initiatives at the London School of Economics.

Fox News’ Jennifer Griffin contributed to this report.