The announcement was particularly shocking for its timing, with the Navy playing a critical role in stopping Iranian ships from traversing the Strait of Hormuz. Thus far, US forces
have redirected 31 vessels to return to port and have also boarded two ships.
Multiple sources told CNN there was tension for months between Phelan and Hegseth, who believed Phelan was moving too slowly on implementing shipbuilding reforms and was also irked by Phelan’s direct communication with Trump, which Hegseth viewed as an attempt to bypass him. Deputy Defense Secretary Steve Feinberg also wanted to take control of major responsibilities for shipbuilding and navy acquisitions, a job that would typically be within Phelan’s purview.
It was during a meeting between Trump and Hegseth on shipbuilding at the White House Wednesday that the issues came to a head, according to a senior White House official.
Trump, frustrated by slow shipbuilding progress himself, became convinced during the meeting that Phelan needed to be replaced, and he and his defense secretary resolved to install someone who would move more quickly, the official said. Trump told Hegseth to “take care of it,” because Phelan is subordinate to the defense secretary. Hegseth sent a message to Phelan informing him he needed to resign or be fired, the official said.
The official said Phelan, though, did not appear to believe Trump was aware of the message, and he soon began phoning other White House officials asking if they had heard he had been told to resign and whether they knew if the president was aware of it. It was around then that Parnell issued the statement, the official said.
At least two White House staffers told Phelan the decision was Trump’s, the official said. But Phelan still sought confirmation from the president himself or someone close to him, coming to the White House grounds and looking for officials in the Eisenhower Executive Office Building with whom he had relationships, asking if they had any information, the official said.
Phelan then asked to meet with Trump and went to the West Wing lobby, the official said, and Trump met with him briefly, confirming that Phelan was out of a job.
Phelan is a businessman with no prior military service; he and his wife previously fundraised millions of dollars for Trump’s campaign before he was confirmed as Navy secretary in 2025.
