The Pentagon has seen its most dramatic leadership shift to date as the civilian head of the fleet stepped down amid a sweeping administrative overhaul.

John Phelan, the private equity billionaire appointed by Donald Trump, resigned as US Navy Secretary on Wednesday, 22 April 2026. Pentagon spokesperson Sean Parnell confirmed John Phelan's resignation in a brief statement, noting the exit was 'effective immediately'.

The move ends a 13-month tenure marked by significant investment but dogged by a billionaire Navy Secretary controversy regarding his lack of prior military service.

Taking the helm as Hung Cao, acting Navy Secretary, the administration has pivoted to a decorated Navy combat veteran to steady the service. This transition occurs at a critical juncture for theDepartment of Defense, as officials grapple with a massive US Navy leadership shake-up that has already claimed several top-tier military heads.

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.We wish…

'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 on X. 'We wish him well in his future endeavours. Undersecretary Hung Cao will become Acting Secretary of the Navy.'

Cao's previous remarks about polarising issues have resurfaced, prompting speculation over his new role. A 25-year Navy combat veteran, Cao has been known for his hardline stance on national security issues. During his 2024 Senate bid against Tim Kaine, he compared Joe Biden's administration to Cold War Vietnam.

'We are losing our country,' he declared in a campaign video. 'You know what, Joe Biden's right, democracy is under attack. The problem is he's the son of a b*** that's doing it... When President Trump was in office, we had peace. Under Joe Biden, the world is on fire.

Cao also slammed the military's diversity efforts during a debate. 'When you're using a drag queen to recruit for the Navy, that's not the people we want,' he asserted. 'What we need is alpha males and alpha females who are going to rip out their own guts, eat them and ask for seconds. Those are the young men and women that are going to win wars.'

He also criticised the US's spending priorities when the US entered the Russia-Ukraine war. 'My heart goes out to the Ukrainian people,' he said, 'But right now we're borrowing $55 billion from China to pay for the war in Ukraine. Not only that, we're depleting our national strategic reserves.'

Source: International Business Times UK