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Leadership Shake-Up: Hung Cao Steps In as New Under Secretary Amid Navy Transition

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On Wednesday, Sean Parnell, the Chief Pentagon spokesperson and Senior Advisor to the Secretary of Defense, announced via social media platform X that Secretary of the Navy John C. Phelan will be stepping down from his position.

Parnell did not provide any specific reasons for Phelan’s departure in his announcement.

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 him well in his future endeavors.

Undersecretary Hung Cao will become Acting Secretary of the Navy.

Parnell did not give further details on what led to Phelan’s departure. 

Phelan was confirmed and sworn in as Secretary of the Navy on March 25, 2025. With a career as a financier, Phelan oversaw cutting of waste in the Navy’s defense budget and focused on rebuilding the Navy into the proactive fighting and deterrence force it had been in the past. Phelan assisted in the launch of President Donald Trump’s vision of a Golden Age of Naval Fleets, as well as spearheaded several public-private partnerships to revitalize and rebuild American shipbuilding, the maritime defense apparatus, and empowered new technology corporations in marrying maritime manufacturing with robotics and AI technology. 





In March, SecNav Phelan oversaw the ribbon-cutting on one of the partnerships: the Hadrian Alabama Factory 4 plant in Cherokee, AL. During that event, SecNav Phelan said:

This is step one of revitalizing the maritime industrial phase of what the Golden Fleet is, which is rebuilding the fleet, revitalizing the maritime industrial base, and changing the way the Navy does business. This is really a win-win between the Navy and Hadrian. Shared risk, alignment of incentives, downside protection, and upside participation. It’s the way we’re going to start to do things.




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