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Golden Fleet row? Key reasons behind Navy Secretary John Phelan's removal

Phelan’s sudden exit follows months of reported disagreements over defence policies, staffing, and the Navy’s expansion plans.

By Trisha Katyayan

Apr 23, 2026 13:08 IST

Navy Secretary John C. Phelan has been removed from his post with immediate effect, the Pentagon confirmed on Wednesday, in a move that comes during a sensitive phase for US defence operations in West Asia.

Sudden exit announced

The announcement was made by Pentagon spokesperson Sean Parnell, who confirmed Phelan's departure in a brief statement.

"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 endeavours."

There had been no public indication earlier in the day that such a decision was imminent, even as Phelan was on Capitol Hill meeting lawmakers ahead of a scheduled hearing.

Friction within the Pentagon

According to reports, Phelan's exit followed months of friction with Defence Secretary Pete Hegseth and Deputy Defence Secretary Stephen Feinberg, Financial Express reported.

Differences reportedly centred on management style, staffing decisions, and approaches to reforming the Navy's shipbuilding programme.

A key point of disagreement was the proposed "Golden Fleet" expansion effort, which included plans for new warships and a "Trump-class" battleship. While Phelan backed the initiative, concerns were raised within the Pentagon over its execution.

Phelan also reportedly had a strained working relationship with Under Secretary Hung Cao, who is seen as being more aligned with Hegseth and is expected to step in following the departure.

Timing amid regional tensions

The leadership change comes as the United States remains engaged in a naval standoff with Iran, including a blockade of the Strait of Hormuz. It also follows other recent changes in military leadership, including the removal of Army Chief of Staff Randy George.

Close ties with Trump

Phelan was known to share a close relationship with Donald Trump. He had appeared alongside Trump during the announcement of the Golden Fleet project, where the president praised his background.

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"John Phelan is one of the most successful businessmen in the country, in our country," Trump said at the event. "He's been a tremendous success."

Before joining the administration, Phelan led a private investment fund in Florida. His exit marks the first departure of a military service secretary during Trump’s current term.

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