The Senate has confirmed John Phelan, an investor who pledged to compensate for his lack of military experience with his business prowess, as the new secretary of the Navy.
Phelan, 61, was approved on Monday in a 62–30 vote to lead the Department of the Navy, which also oversees the U.S. Marine Corps. Along with 51 Republicans, 11 Democrats voted to support his nomination, including Senate Armed Services Committee ranking member Sen. Jack Reed (D-R.I.) and committee members Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Jacky Rosen (D-Nev.), and Jeanne Shaheen (D-N.H.).
Phelan is co-founder and chairman of Rugger Management, a private investment firm based in Palm Beach, Florida, and a major donor to President Donald Trump’s 2024 reelection campaign. He was one of Trump’s earliest defense picks, second only to Defense Secretary Pete Hegseth.
Phelan is the first person in more than 15 years to lead the Navy without having served in any branch of the U.S. military. His connection to the military is through an advisory role for the Spirit of America, a nonprofit that works with troops and diplomats to deliver humanitarian aid to conflict zones.
Phelan takes office as the Navy works to expand its “hybrid fleet” of manned and unmanned warships, accelerate IT modernization, and integrate new robotic platforms—all while facing an increasingly assertive Chinese navy that is steadily modernizing and incorporating advanced technologies.
During his confirmation hearing, Phelan assured lawmakers that his business background would help the Navy tackle chronic inefficiencies, particularly in shipbuilding and budget management.
“I understand why some may question why a businessman who did not wear the uniform should lead the Navy. I respect that concern,” he said in his opening statement at last month’s hearing.
“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.”
Phelan said the problem with the U.S. Navy has been a lack of a sense of urgency, as reflected in decades of delayed shipbuilding and inadequate maintenance that have hindered war readiness.
“It’s almost as if we’re waiting for a crisis to happen to ignite things, and I think in the business of warfare, that’s a dangerous place to be,” he said.
“I would bring a sense of urgency to this. I would bring a sense of accountability to this.”
Another key focus for Phelan is addressing the Navy’s repeated failure to pass an audit. The U.S. Marine Corps has passed its audit for the second straight year, but other military branches continue to struggle with tracking their spending.
“In the private sector, if you fail an audit, two things happen: You either go to jail, or you get fired,” he told the Senate. “So I think you need to fix it very fast.
“I intend to sit down, day one, and we are going to go through every contract that we have and understand what exactly they say and what flexibility they do or do not give us, what contract needs to change or not change, and why.
“I need to understand why the Navy cannot pass an audit.”
