Washington, D.C. – April 22, 2026 – In a surprise announcement that marks the first departure of a military service secretary in President Donald Trump’s second term, the Pentagon confirmed Wednesday that Navy Secretary John C. Phelan is leaving the administration effective immediately. Under Secretary Hung Cao, a retired Navy captain and decorated combat veteran, has stepped in as acting secretary of the Navy.25

Pentagon spokesman Sean Parnell broke the news via social media, stating simply that Phelan was “departing the administration, effective immediately” and that Cao would assume the role. The move comes amid a broader wave of high-level defense personnel changes and follows months of speculation about tensions within the Department of the Navy’s civilian leadership. No official reason was provided in the Pentagon’s statement, but insiders point to a combination of policy clashes with Defense Secretary Pete Hegseth and lingering scrutiny over Phelan’s past associations.1

Phelan, 62, a businessman, political donor, and art collector who co-founded MSD Capital, served as the 79th secretary of the Navy since his confirmation in March 2025. During his roughly 13-month tenure, he focused heavily on accelerating shipbuilding, rescinding Biden-era climate initiatives in favor of lethality-focused priorities, and advancing Trump’s vision for a “Golden Fleet” that emphasizes American industry, unmanned systems, and hybrid manned-unmanned capabilities. He publicly championed new classes of battleships and pushed back against what he called wasteful spending on non-combat priorities. In February 2026 remarks at the WEST conference, Phelan described the Golden Fleet as “an America First commitment to national security, American industry, the American worker and taxpayer.”8

Yet Phelan’s time in office was not without controversy. In February 2026, newly released Jeffrey Epstein files revealed that Phelan had flown on the financier’s private Boeing 727 at least twice in 2006—once from New York to London on February 27 and the return flight from London to New York on March 3. The manifests listed Phelan alongside Epstein and Jean-Luc Brunel (misspelled as “Jean Luk Brunnel”), a modeling agent later charged with sex trafficking offenses. At the time, Phelan worked as an investment adviser for Michael Dell’s firm. A close friend told reporters the flight was arranged by Bear Stearns CEO Jimmy Cayne and that Phelan had no further interaction with Epstein. Phelan declined comment through Navy channels. While no wrongdoing was alleged and the flights occurred well before Epstein’s 2008 conviction, the revelation fueled criticism from both sides of the aisle and raised questions about vetting in the Trump administration.3536

Defense Secretary Pete Hegseth reportedly fired Phelan, according to multiple accounts, amid disagreements over the pace of naval modernization and internal Pentagon dynamics. Phelan’s exit is the latest in a series of top defense departures, underscoring the high-turnover environment as the administration navigates global tensions, including naval blockades and shipbuilding imperatives.5

Stepping into the breach is Hung Cao, whose life story reads like a quintessential American success narrative. Born in 1971 in Saigon, Cao was four years old when he fled Vietnam with his family aboard a U.S. Navy vessel during the chaotic fall of Saigon in 1975. A refugee who arrived in the United States with little more than the clothes on his back, he went on to graduate from the U.S. Naval Academy and serve 32 years in the Navy before retiring as a captain in 2021. Cao is a qualified Navy Special Operations, Explosive Ordnance Disposal (EOD), Diving, Naval Parachutist, and Surface Warfare Officer. He deployed to Iraq, Afghanistan, and Somalia in combat roles, earning multiple decorations for valor.2526

Prior to his appointment as under secretary in October 2025—confirmed by the Senate 52-45 along party lines—Cao ran unsuccessfully for U.S. Senate in Virginia as a Republican in 2024. His campaign emphasized his anti-communist roots and commitment to a strong national defense. As under secretary, he served as the Department of the Navy’s chief operating and management officer, overseeing nearly one million personnel and a $250+ billion budget. Secretary Phelan himself welcomed Cao in October 2025, launching a portfolio aimed at “rebuilding warrior ethos and quality of service” across the Navy and Marine Corps.27

Conservative voices on social media erupted in celebration of the transition. Nick Sortor, who first highlighted the news on X, called Cao “a true, communist-hating PATRIOT.” Users praised Cao’s background: “From Vietnam refugee to the U.S. Secretary of the Navy. THE American way.” Virginia supporters noted his local roots and predicted he would bring “tireless advocacy” for fleet expansion. Even some who questioned Phelan’s qualifications expressed relief at the change, with one commenter observing, “This is the type of warrior leadership America actually needs.”0

Democrats and critics, however, expressed concern over the abrupt nature of the shakeup. Some highlighted ongoing global naval challenges, including the U.S. blockade of Iranian ports and the need for rapid shipbuilding to counter China’s expanding fleet. “Our country is becoming less safe every day,” one X user posted, reflecting broader worries about instability in defense leadership.18

The Navy faces steep challenges regardless of who holds the top civilian post. Shipbuilding backlogs, recruitment shortfalls, and the integration of AI-driven unmanned systems remain urgent priorities. Cao’s combat experience and EOD/special operations pedigree position him as a leader who understands warfighter needs firsthand—an asset as the service pushes Trump’s “Golden Fleet” initiative and seeks to restore what officials call a “warrior ethos.”

Whether Cao’s acting role becomes permanent remains to be seen. President Trump has yet to comment publicly, but sources close to the White House suggest the move aligns with the administration’s emphasis on results-driven, battle-tested leadership. For now, the Navy’s top civilian office transitions to a man whose personal journey from refugee to flag-level influencer embodies the very ideals the service seeks to project.

As one X commenter put it: “Hung Cao will be an excellent Secretary of the Navy.” The coming weeks will test whether his leadership can deliver the lethal, efficient fleet America’s defense strategy demands.