BREAKING: Secretary of the Navy steps down, to be replaced by Undersecretary Hung Cao

The Secretary of the Navy John C. Phelan will be departing from his position and will be replaced by Undersecretary Hung Cao, who will become Acting Secretary of the Navy. The US Navy is currently staging a blockade in the Strait of Hormuz as part of a conflict begun by the US and Israel with the nearly nuclear nation on February 28.

"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. We wish him well in his future endeavors. Undersecretary Hung Cao will become Acting Secretary of the Navy," shared the Assistant to the Secretary of War for Public Affairs, Chief Pentagon Spokesman & Senior Advisor to SECWAR.

It was later reported that he was fired and did not step down of his own accord.

Phelan was appointed in March 2025 and, per his Navy biography, was founder and chairman of Rugger Management prior to coming aboard with the Navy. Much of his prior experience is with private investment firms. Phelan has only been on the job 13 months. He is one of a handful of military officials that have recently left their positions as the conflict in Iran drags on.

A source told Axios "Phelan didn't understand he wasn't the boss. His job is to follow orders given, not follow the orders he thinks should be given." The source went on to say that Phelan "didn't get along" with Secretary of War Pete Hegseth.

On Tuesday, Phelan spoke to reporters about coming procurements in Navy vessels, part of the Golden Fleet. "I’ve heard the critiques: too vulnerable, too expensive, too big," Phelan said, per National Defense. "We’ve heard that before about carriers and about submarines — and yet, when it matters most, those are the platforms combatant commanders call for first."

In answer to the question "why battleships, and why now?" Phelan said: "The answer is straightforward and grounded in the realities of high-end conflict," going on to say "No commander should ever have to choose between air defense, anti-ship warfare, anti-submarine warfare or long-range strikes when defending our national interests and our greatest asset — our people."