US Navy Secretary John Phelan is departing from the Trump administration, as announced by the Pentagon on Wednesday. His departure will take effect immediately, with Navy Undersecretary Hung Cao stepping in as acting secretary of the Navy, a role primarily focused on administrative duties. This change comes against the backdrop of the ongoing US-Israel conflict and internal disputes within military leadership related to shipbuilding policies.

Phelan's exit adds to a trend of high-ranking military officials leaving the administration, with sources indicating growing discord over various leadership issues, specifically around shipbuilding initiatives that have been a point of contention within the Navy.

Pentagon spokesman Sean Parnell expressed gratitude for Phelan's service, wishing him well in future endeavors. His departure follows a recent shake-up in military leadership that included the resignation of Army Chief of Staff Randy George at the request of Defense Secretary Pete Hegseth, who has been actively reshaping the Defense Department's leadership team.

Phelan, who assumed the Secretary of the Navy position in March 2025, has been associated with Trump's vision for a revitalized naval fleet. His tenure has seen significant military negotiations alongside President Trump, focusing on a proposed 'Golden Fleet' initiative that seeks to enhance naval capabilities. However, reports suggest that Phelan's relationship with Hegseth has frayed, particularly regarding recruitment and procurement strategies.

As tensions remain high in the Strait of Hormuz, with continued US naval blockades amid ongoing conflicts, the leadership transition in the Navy marks a critical moment in US military strategy and administration.