Lawmakers Confirm Nominee John Phelan as New Navy Secretary

Businessman John Phelan, who lacks military experience but brings strong business credentials, has been confirmed as Secretary of the Navy in a 62-30 Senate vote, setting the stage for what he promises will be a decisive approach to fixing the Navy’s numerous challenges.

Key Insights

The Senate confirmed John Phelan as Navy Secretary with bipartisan support (62-30), making him the first person in over 15 years to lead the Navy without military service.
Phelan has identified critical issues plaguing the Navy including extended deployments, delayed shipbuilding, failed audits, subpar housing, and high suicide rates.
Phelan has argued he can leverage his corporate experience to instill urgency and accountability in naval operations.
Phelan’s nomination faced scrutiny from some Democrats concerned about his investments in defense contractors and potential workforce cuts.
The Navy currently faces leadership challenges with vacant top positions and growing competition from China’s expanding naval fleet.

A Businessman Takes the Helm

The US Senate has confirmed John Phelan as the new Secretary of the Navy following a vote of 62-30. As the founder of Rugger Management LLC and a major donor to President Trump’s 2024 campaign, Phelan becomes the seventh non-veteran to serve as Navy Secretary in the last seven decades. His confirmation makes him the second Trump service secretary to be approved by the Senate this year, following Daniel Driscoll’s confirmation as Army Secretary. Despite lacking military service, Phelan has maintained a connection to military affairs through an advisory role with the nonprofit Spirit of America.

During his confirmation process, Phelan spoke about the challenges facing the Navy and why he believes he is qualified to address them. Rather than viewing his civilian background as a disadvantage, Phelan has positioned his business experience as precisely what’s needed to solve longstanding problems plaguing naval operations. His business-oriented approach earned strong support from Republican senators, with Sen. Roger Wicker notably praising Phelan’s track record of reviving struggling companies.

Senate Confirms Investment Banker John Phelan as Navy Secretary https://t.co/BkzD7ADw7R

— Military.com (@Militarydotcom) March 25, 2025

Identifying Navy Challenges

At his confirmation hearing, Phelan didn’t mince words about the serious problems facing the Navy. He cataloged a list of issues requiring immediate attention, including extended deployments, inadequate maintenance procedures, cost overruns in procurement, delayed shipbuilding timelines, consecutive failed financial audits, substandard military housing, and alarming suicide rates among naval personnel. Phelan characterized these problems as “systemic failures that have gone unaddressed for far too long.”

Phelan was particularly critical of what he believes to be a larger issue of complacency within the Navy’s leadership. He promised to bring a sense of urgency and accountability to the service, arguing that waiting for a crisis to spark action is dangerous in matters of national security.

Strategic Priorities and Concerns

Among Phelan’s top priorities is passing a department-wide audit, something the Navy has struggled with for years. He also intends to address recruitment challenges by studying successful practices from the Marine Corps. During his confirmation hearing, Phelan emphasized the importance of maintaining high standards in recruitment, noting that the military needs to hire not just for immediate needs but for future leadership positions.

Not all senators were convinced by Phelan’s credentials. Democrats, such as Sen. Elizabeth Warren, expressed concerns about his investments in defense contractors creating potential conflicts of interest. Sen. Jeanne Shaheen withheld support due to worries about potential workforce cuts affecting shipyard workers. In response to this concern, Phelan promised to collaborate with Defense Secretary Pete Hegseth to protect shipyard jobs.

The Navy faces additional leadership challenges with its top uniformed position vacant following Adm. Lisa Franchetti’s dismissal. Phelan will work alongside Navy special operations veteran Hung Cao, who has been nominated as under secretary.