The current Secretary of the Navy is John Phelan.
Honestly, if you hadn't heard that name until recently, you're not alone. He wasn't exactly a household name in military circles before being sworn in as the 79th SECNAV on March 25, 2025. Most people expect a Navy Secretary to be a retired Admiral or at least someone who spent decades in the Pentagon basement. Phelan is neither. He's a Florida businessman who spent his career managing billions in the private sector rather than commanding fleets at sea.
He was nominated by President Donald Trump and confirmed by the Senate in a 62-30 vote.
Who is the Current Secretary of the Navy?
John Phelan is a financier, not a sailor. Before he was "Mister Secretary," he founded Rugger Management, LLC, and spent years as a co-founder and managing partner at MSD Capital—the firm that manages the massive wealth of Michael Dell. We're talking about a guy who oversaw $20 billion in profits.
Why does that matter for the Navy? Because right now, the Navy is struggling with a massive math problem.
Ships are taking too long to build. Budgets are ballooning. The "industrial base"—which is just a fancy way of saying the factories and workers that actually make the ships—is under massive strain. Phelan was brought in specifically to treat the Department of the Navy more like a Fortune 500 company and less like a government bureaucracy.
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It’s a bit of a gamble. Some critics, like Senator Elizabeth Warren, raised eyebrows over his lack of military experience and his past as a major political donor. But others, like Senator Tim Kaine, basically said that since the traditional way of doing things isn't working, maybe a "nontraditional" leader is exactly what the doctor ordered.
A Resume of Results, Not Ranks
- Education: He’s got an MBA from Harvard Business School and a degree from Southern Methodist University (SMU).
- The Dell Connection: He helped grow MSD Capital from a small outfit into a powerhouse managing over $30 billion.
- Philanthropy: He’s been involved with the Spirit of America, a nonprofit that actually works alongside U.S. troops to provide assistance in conflict zones.
The "Shipbuilding, Shipbuilding, Shipbuilding" Mandate
If you ask Phelan what his top priority is, he’ll probably tell you the same thing he told the Senate Armed Services Committee. He famously recounted a story where President Trump texted him a photo of three rusty ships at 1:18 in the morning with a simple question: "What are you doing about this?"
The Navy is currently trying to modernize its fleet while facing down a rising Chinese navy that is growing at a terrifying pace. Phelan's job is to fix the "systemic failures" in how we buy and build ships.
He's been pretty vocal about "stupid" practices he’s seen at shipyards. For example, he recently pointed out how ridiculous it is that a welder might have to walk a mile just to find a bathroom or two miles to get a supply bin. He's trying to cut that waste out. Basically, he wants the Navy to act like it’s in a state of constant urgency.
Radical Transparency and Taking Risks
In January 2026, Phelan spoke at a major symposium and told the Navy it needs to stop being so afraid of making mistakes. He called for "radical transparency."
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He wants to move from a "compliance-based" organization—where everyone is just checking boxes to stay out of trouble—to a "performance-based" one.
He’s even pushed the idea that the Navy should act like it’s "playing Miami or Indiana" every weekend (he's a big football fan). That means staying sharp and prepared for war at any moment, not just when a crisis hits the news.
Comparing Phelan to His Predecessor
To understand why Phelan is such a shift, you have to look at who he replaced. Carlos Del Toro, the 78th Secretary, was a retired Navy Commander. He had spent 22 years in uniform and actually commanded a destroyer, the USS Bulkeley.
Del Toro focused heavily on "Maritime Statecraft" and strengthening international partnerships. While he also pushed for a 355-ship fleet, his approach was deeply rooted in traditional naval culture.
Phelan is the first Navy Secretary without military experience since 2009. He’s leaning into that outsider status. He’s not there to tell the Admirals how to drive the ships; he’s there to tell the shipbuilders how to deliver the boats on time and under budget.
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What’s Next for the SECNAV?
If you’re following the news, watch for Phelan’s upcoming budget requests. He’s managing an annual budget that exceeds $263 billion. How he allocates that money will tell us if his "businessman" approach is actually working.
He’s currently working alongside Hung Cao, a retired Navy captain who serves as the Under Secretary of the Navy. This gives the department a "one-two punch" of Phelan’s financial expertise and Cao’s operational experience.
Actionable Insights for the Curious:
- Monitor the Shipbuilding Progress: Keep an eye on the Constellation-class frigate and Virginia-class submarine programs. These are Phelan's biggest tests.
- Watch the Personnel Changes: Phelan has expressed concern over record-high suicide rates and poor housing conditions for sailors. Real change here will be measured in retention numbers, not just press releases.
- Check the Audits: The Navy has a long history of failing audits. If Phelan can actually get the books to balance, it will be a historic win for his business-first philosophy.
The Navy is at a crossroads. Whether a Palm Beach financier can navigate these waters better than a seasoned Admiral remains to be seen, but John Phelan is certainly not playing it safe.