Senate Approves Another Key Trump Appointee
John Phelan has been officially confirmed by the U.S. Senate as the next Secretary of the Navy, following a 62-30 vote that garnered support across party lines.
A prominent Florida businessman, Phelan is known for founding the investment firm Rugger Management LLC and previously holding a top role at MSD Capital. He is also a well-known donor to former President Donald Trump’s campaign. Despite having “no prior military experience,” he received backing from both Republicans and Democrats.
Although his confirmation hearing proceeded without major resistance, several senators voiced unease over his lack of military service or background in leading a Pentagon-affiliated civilian branch.
In response, Phelan emphasized that his extensive career in the private sector provides him with the necessary tools to confront the Navy’s ongoing issues—ranging from “failed audits” and “workforce issues” to “cost overruns” and shipbuilding delays.
Appearing before the Senate Armed Services Committee, Phelan highlighted that his outsider perspective was essential for overdue reform. “The U.S. Navy is at a crossroads,” he warned, citing “extended deployments,” “inadequate maintenance,” “subpar housing,” and “record high suicide rates” as among the deep-rooted challenges the branch faces.
Phelan echoed the Trump administration’s focus on naval construction, stressing, “I don’t think I could say shipbuilding enough times,” especially in reference to the ongoing struggles with large capital ships like aircraft carriers and submarines.
He vowed to conduct a full review of the Navy’s contracting practices and push for a successful financial audit. “I intend to sit down day one, and we are going to go through every contract,” Phelan stated. He also committed to identifying why the Navy has repeatedly failed to pass audits, promising transparency and accountability.
While acknowledging criticism over his non-military background, Phelan conveyed a strong respect for “stability and tradition.” However, he cautioned that such values should not “suffocate adaptability, innovation, collaboration and trust.”
To those skeptical of a civilian businessman leading the Navy, he said, “The Navy and the Marine Corps already possess extraordinary operational expertise within their ranks. My role is to utilize that expertise and strengthen it to step outside the status quo and take decisive action with a results-oriented approach.”
One of the key programs Phelan addressed was the troubled Constellation-class frigate initiative. Describing the situation bluntly, he told the committee, “This program is a mess from what it looks like.” He pledged to investigate the issues thoroughly and report back with actionable insights.
Senator Gary Peters (D-Mich.), who is retiring and represents a state adjacent to the Wisconsin shipyard building the frigates, asked whether Phelan would support the effort as a “long-term cornerstone of the fleet.” Phelan responded, “I will look at this and work with the secretary of defense and the deputy secretary of defense” before making a final determination.
The Navy awarded the Fincantieri Marinette Marine contract in 2020, near the end of the Trump administration. The frigate is designed to perform a critical anti-submarine warfare function within the surface fleet.
However, a spring 2024 Navy report revealed that the lead ship may be delayed by up to three years. Contributing factors include design changes and difficulty recruiting and retaining workers in northern Wisconsin’s harsh winter environment near the Menominee River, according to USNI News.