The US Navy plans to spend approximately $46 billion over the next five years on the design and development of new battleships
Immense questions are being raised by the sudden decision of the Pentagon to announce the "axing" of US Secretary of the Navy, John Phelan, at a moment when the US has imposed a naval blockade on Iranian ports in the Strait of Hormuz. Although officially no specific justification has been given for Phelan's immediate dismissal—with US media citing great tension with Defense Secretary Pete Hegseth regarding the implementation of reforms in the shipbuilding industry—it is obvious that the timing reveals the truth. Logic cannot sustain the argument that while the American Navy has imposed a blockade on Iran and is sending a third aircraft carrier to the Gulf region indicating that something major is being prepared, the Navy Secretary is being ousted because reforms are not progressing.
Disagreement and rift
Analysts argue that Phelan's dismissal is essentially related to his disagreements regarding the strategy applied by the Pentagon in the Strait of Hormuz, as well as core priorities in US defense. It is reported that Phelan, who had no military experience before taking office but led the private investment fund Rugger Management LLC in Florida, did not strongly support the policy for the Hormuz blockade and failed to implement it rigorously. As a result, critics accuse him of allowing Iranian ships to "pierce" the American naval blockade, once again ridiculing the US military.
Management style
The New York Times maintains, citing anonymous officials, that Phelan's tenure was accompanied by conflicts with the Pentagon leadership, including Defense Secretary Pete Hegseth and his deputy, Stephen Feinberg. The causes of tension were "management style, personal disagreements, and other issues." Reuters, ABC News, and the Washington Post also report that Phelan was forced out due to a clash with Hegseth, with one of the reasons being the slow pace of shipbuilding reforms.
The list of dismissals expands
Defense Secretary Pete Hegseth fired Navy Secretary John Phelan, with the Pentagon speaking of Phelan's immediate departure. The removal of the Navy's top civilian official caught many by surprise and adds to the list of military personnel who have abruptly departed or been removed during Donald Trump's second term. In early April—again in the midst of war—Hegseth demanded the immediate resignation of the Army Chief of Staff, General Randy George, while also firing two other senior officers: David Hodne, head of the Army’s Training and Doctrine Command, and the Chief of Chaplains, Major General William Green Jr.
He wasn't the... boss
"Phelan did not understand that he was not the boss. His job is to follow orders given to him, not those he thinks should be given," a person familiar with the situation told Axios. The same source mentioned that Phelan and Hegseth "did not get along." Pentagon chief spokesperson Sean Parnell stated that Phelan is "leaving the administration, effective immediately," without providing further explanations.
Lack of strong reaction
According to the same sources, Hegseth allegedly accused Phelan of not reacting aggressively enough toward Senator Mark Kelly, following the latter's appearance in a video advising soldiers to ignore "illegal orders." Phelan also reportedly clashed with Hegseth's deputy, Stephen Feinberg, who—according to the New York Times and CNN—disagreed with the way Phelan handled shipbuilding initiatives. The sudden departure came just one day after Phelan addressed a large audience of sailors and industry professionals at the Navy's annual conference in Washington, DC, where he presented his agenda.
Background
Phelan reportedly had a good relationship with Trump, with whom he exchanged messages even on issues such as rust on warships. However, according to sources, Hegseth felt that Phelan bypassed the hierarchy excessively by maintaining direct communication with Trump. Phelan's residence is located near Mar-a-Lago in Palm Beach, Florida, which facilitated this contact.
The broader picture
The firing comes amidst naval tension with Iran and about three weeks after the removal of Army Chief General Randy George, as well as other military leaders. Hegseth also had friction with Secretary of the Army Daniel Driscoll, who has been praised for the Army's transformation program and is a close friend of Vice President JD Vance. "The difference between Phelan and Driscoll is that Driscoll is doing exceptionally well with the transformation program. And he is a Vance man. Phelan is neither of those," a Pentagon source noted.
Power relations
Despite the turbulence, Hegseth maintains a strong position as he has good relations with: • Trump • Vance • Secretary of State Marco Rubio • Chairman of the Joint Chiefs Dan Caine "These are the four most important relationships he can have—and they are good," said a senior official. "But you never know here."
Who is the new US Navy Secretary, Hung Cao
Hung Cao, the Under Secretary of the Navy, assumes the duties of Acting Secretary. Cao ran for the US Senate in Virginia in 2024, attempting to unseat Democratic Senator Tim Kaine without success. He had Trump's support in the Republican primaries. Cao is a Navy veteran with 25 years of service and experience in combat zones. His biography notes that he fled Vietnam with his family as a child in the 1970s. In a campaign video, he compared the communist regime of Cold War Vietnam to the administration of former President Joe Biden.
The Golden Fleet
Phelan had met with journalists on Tuesday to discuss the future of the Navy and investments such as the Golden Fleet. "We will need to significantly improve our ability to build ships," he stated. The US Navy plans to spend about $46 billion over the next five years for the design and development of new battleships. Construction of the first ship is expected to begin in 2028. The Navy is requesting approximately $1 billion for preliminary costs in 2027 and $837 million for research and development. The ship is expected to feature advanced weapon systems, such as high-power lasers, electromagnetic railguns, and hypersonic missiles. The "Guided Missile Battleship (BBG(X))" program aims to strengthen and modernize the large surface combatant fleet and maintain naval superiority. According to documents, these are capabilities that existing ships cannot cover.
A fleet of 20 – 25 ships
Initially, two ships will be built, with the first named USS Defiant (BBG-1). Long-term, the Navy seeks a fleet of 20–25 ships, known as the "Golden Fleet". Phelan stated that they are already in discussions with two manufacturers for the design and that the goal is rapid production: "We are already talking to two suppliers, and everything will depend on the progress of the design and the capacity of their shipyards. We want to start immediately and begin construction in 2028." The cost is estimated at about $17 billion for the first ship and $13 billion for the second. However, these amounts may change, especially if nuclear propulsion is decided upon.
Doubts and criticism
Despite the progress, the program faces intense criticism. Experts argue that such large ships will be vulnerable, characterizing them as "missile magnets". Furthermore, their cost is compared to or even exceeds that of aircraft carriers, while it is considered to contradict the Navy's doctrine of distributed lethality. Phelan responded: "We hear that they are vulnerable, expensive, and too large. The same was said about aircraft carriers and submarines—yet when needed, these are what commanders ask for first." Nevertheless, critics estimate the program could be canceled after Trump leaves office, leading to massive financial losses.
Uncertainty for aircraft carriers
At the same time, the future of Ford-class aircraft carriers remains uncertain. The Navy is re-evaluating costs and design, not ruling out even cancellations. The only active ship of the class, the USS Gerald R. Ford (CVN-78), has played a significant role in operations against Iran. Three more ships are under construction: • USS John F. Kennedy (CVN-79) • USS Enterprise (CVN-80) • USS Doris Miller (CVN-81) Future ships USS William Jefferson Clinton and USS George W. Bush are also being considered. Trump has repeatedly expressed opposition to the EMALS launch system of the new carriers, preferring a return to steam-powered catapults.
The vision of the Trump-class
The plan envisions ships 840–880 feet long, with a displacement of up to 41,000 tons and a crew of up to 850 people—much larger than the Zumwalt-class destroyers. Equipment will include: • high-energy railguns • hypersonic missiles • cruise missiles • laser systems • advanced radars such as the AN/SPY-6 The new program is expected to replace the DDG(X) destroyer plan.
Challenges and doubts
The Center for Strategic and International Studies warns that development will take many years due to size and complexity. Similar programs in the past faced major delays. Analysts estimate the project could span multiple administrations and risk cancellation. Expert Bernard Loo called it a "prestige project," comparing it to the Japanese battleships Yamato and Musashi of World War II, which were destroyed before being fully utilized. Despite the doubts, the program seems closer to realization than initially estimated.
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