Secretary of the Navy John Phelan was removed from his role on Wednesday, according to six sources familiar with the situation who spoke to CNN. This decision came amid tensions with Defense Secretary Pete Hegseth regarding shipbuilding reforms and Phelan’s close ties to President Donald Trump.
Pentagon spokesperson Sean Parnell announced Wednesday evening that Phelan would be leaving “effective immediately.” This surprising news surfaced while the US Navy is actively enforcing a blockade of Iranian ports during a ceasefire in the ongoing conflict. Earlier, Hegseth had spoken with Trump and informed Phelan that he needed to resign or face termination, according to two sources familiar with the matter.
“President Trump and Secretary Hegseth agreed new leadership at the Navy is needed,” one senior administration official told CNN.
The Navy referred questions about the specifics of Phelan’s departure to the Office of the Secretary of Defense, which has yet to respond to requests for comment. The White House pointed CNN towards a statement from Parnell.
“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 stated in a post on X. “We wish him well in his future endeavors. Undersecretary Hung Cao will become Acting Secretary of the Navy.”
The timing of this announcement was especially surprising, as the Navy is playing an essential role in preventing Iranian ships from passing through the Strait of Hormuz. So far, US forces have redirected 31 vessels back to port and have boarded two ships.
Multiple sources informed CNN that there had been ongoing tension between Phelan and Hegseth for months. Hegseth felt that Phelan was too slow in implementing shipbuilding reforms and was also frustrated by his direct communication with Trump, which he perceived as an attempt to sideline him. Additionally, Deputy Defense Secretary Steve Feinberg wanted more authority over shipbuilding responsibilities typically handled by Phelan.
It was during a meeting between Trump and Hegseth at the White House on Wednesday regarding shipbuilding that tensions reached their peak, according to a senior White House official.
Trump became frustrated with slow progress in shipbuilding during this meeting and decided it was time for a change in leadership; he wanted someone who could act more swiftly. He instructed Hegseth to handle it since Phelan reports directly to him. Following this conversation, Hegseth messaged Phelan informing him he needed either to resign or be terminated.
The official noted that although it seemed like Trump wasn’t aware of this message at first, shortly after receiving it, Phelan began reaching out to other White House officials asking if they knew anything about being told he should resign or if Trump was informed about it. It was around this time when Parnell released his statement.
At least two staffers from the White House communicated with Phelan indicating that this decision came from Trump himself. However, seeking confirmation directly from Trump or those close to him led him back onto White House grounds where he tried finding contacts within relationships he had established previously at Eisenhower Executive Office Building.
Eventually, after requesting a meeting with Trump at West Wing lobby where they met briefly; during which Trump confirmed that indeed he was no longer holding office.
Phelan is primarily known as a businessman without prior military experience; along with his wife helped raise millions for Trump’s campaign before becoming secretary of navy in 2025.
“John will be a tremendous force for our Naval servicemembers, and a steadfast leader in advancing my America First vision,” said Trump when appointing him back then. “He will put the business of US Navy above all else.”
His exit marks first among military service secretaries appointed under Trump’s administration; however since taking charge at Pentagon; numerous high-ranking officers across various services have been dismissed by Hegseth.
This announcement coincides closely with an annual maritime conference – specifically; Navy League’s Sea Air Space conference occurring just outside Washington D. C., where both attended alongside other senior naval leaders present speaking there earlier too.
CNN reported before indicating connections linking back between flight manifests showcasing involvement flying along side convicted sex offender Jeffrey Epstein dating back into 2006 timeframe revealed participation sharing plane rides including several financiers alongside Jean-Luc Brunel who faced legal issues prior up until found dead last year while incarcerated till then also involved sexually assault minors over time frame preceding case against Epstein itself further bringing scrutiny upon individuals involved therein still ongoing investigations led thereafter afterwards continuing forward progressing accordingly based off findings discovered along way leading closure being sought overall investigation pertaining this matter altogether completely ongoing previously stated facts reiterating importance surrounding situation needing clarity ahead going forward now too adding pressure mounting accountability level required naturally needing resolution achieved properly rightfully 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preserving traditions cultural artifacts embody expressions preserve resonance lasting permanence reminiscent epochs bygone witnessing transition evolutions adaptations survival ingenuity testament resilience fortitude borne hardships emanates grace hope anchor convictions propel undertakings destined redefine legacies assert retain significance relevance invoke realizations rediscover intrinsic worth lead engage tap innate capabilities solicit partnerships realize missions collaboration strengthens endures recognizes necessity adaptability sustains effectiveness responsiveness cultivates dialogue facilitates understanding cultivates empathy fuels harmony ensures sustainability offers safety assurance allows coexistence breed prosperity ensure security fortify autonomy increases resiliency systematic approaches enhance coherence encourage participation immerse populations within frameworks reinforce citizenship bolster democratization expansion rights equip enable constructive 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