The Pentagon announced the departure of John Phelan as Secretary of the Navy, reportedly at the behest of President Donald Trump. Tensions between Phelan and Defence Secretary Pete Hegseth had been escalating, primarily due to disagreements over the pace of shipbuilding reforms. Sources indicate that Hegseth was frustrated with Phelan's direct communication with Trump, which he perceived as an attempt to circumvent his authority. Following a meeting where Trump expressed dissatisfaction with the slow progress, he instructed Hegseth to address the issue. Phelan, who was appointed in late 2024 without prior military experience, has a notable background in finance, having co-founded Rugger Management LLC and MSD Capital. His dismissal is significant as it marks the first exit among military service secretaries appointed by Trump, with Hegseth having already removed several senior military officers since taking office.