John Phelan, a Florida-based businessman and investment firm founder, has been confirmed by the U.S. Senate as the next Secretary of the Navy. The Senate voted 62-30 in favor of his nomination, with support from both Republican and Democratic lawmakers.
Although Phelan lacks prior military experience, he emphasized during his confirmation hearing that his business background equips him to address key challenges facing the Navy. These include issues related to shipbuilding delays, audit failures, workforce shortages, and rising maintenance costs.
Phelan is the founder of Rugger Management LLC and formerly served as managing partner at MSD Capital. His nomination did not encounter major opposition in committee, though some senators did express concerns over his limited defense sector experience.
During his confirmation hearing, Phelan described the Navy as being at a “critical crossroads,” citing ongoing operational and organizational issues, including outdated housing, extended deployments, and rising rates of service member suicides.
He committed to a thorough review of Navy contracts and pledged to pursue a clean financial audit. “We need to fully understand what’s in these agreements and determine where changes are needed,” Phelan told the Senate Armed Services Committee.
One of the programs he highlighted was the Constellation-class frigate, which has faced significant construction delays. Phelan called the program “a mess” and said it would be among his top priorities.
The Navy’s contract for the new frigate class was awarded in 2020 to Fincantieri Marinette Marine, a shipyard in northern Wisconsin. Challenges with design changes and staffing have led to significant delays—up to three years for the lead ship, according to a recent Navy study.
While Phelan acknowledged concerns over his non-military background, he stated that his role would focus on strategy, reform, and accountability, relying on the Navy’s operational leadership for military expertise. “My mission is to support and strengthen the Navy and Marine Corps by helping them move past bureaucracy and take effective, results-driven action,” he said.
Phelan’s confirmation marks a new chapter for the Department of the Navy, as it aims to modernize systems, improve readiness, and address long-standing challenges in an increasingly complex global environment.