John Phelan, co-founder of MSD Capital and longtime businessman, was confirmed Monday as the 79th Secretary of the Navy in a 62-30 Senate vote, placing a civilian with deep financial roots at the helm of the Department of the Navy amid rising global tensions and an urgent push for modernization.
As the Navy’s top civilian leader, Phelan will oversee both the U.S. Navy and Marine Corps, helping shape the sea services’ strategy, operations, and priorities—from emerging technologies to force readiness.
Investing in the Future Force
In written testimony submitted ahead of his confirmation hearing last month, Phelan outlined a strategic vision focused on expanding investment in uncrewed systems, autonomy, mission systems, and communications to enable manned-unmanned teaming across the services.
He joins the department as the Navy continues developing a “hybrid fleet” and seeks to accelerate robotic platform deployment under initiatives such as Project 33. Simultaneously, the Marine Corps is moving forward with programs like the Penetrating Affordable Autonomous Collaborative Killer-Portfolio (PAACK-P) and loitering munitions designed for contested environments.
Counter-Drone Capabilities in Focus
Phelan stressed the need for a more diverse and cost-effective suite of counter-drone tools, pointing to lessons learned during recent Navy operations in the Red Sea, where warships intercepted drones launched by Houthi militants.
“The Red Sea engagements provided valuable lessons,” he wrote. “While cost exchange ratios are a useful metric against low-cost threats, they don’t encompass the full complexity of naval warfare… We must provide commanders with a wider variety of reliable options beyond their current limited and costly solutions.”
Phelan said he would prioritize expanding development of layered ship defense systems, including directed energy weapons, loitering munitions, and advanced naval guns.
The Marine Corps has already taken steps in this direction, recently awarding a $642 million contract to Anduril Industries to deploy a family of systems aimed at defending installations from small unmanned aerial systems.
Cybersecurity and Digital Modernization
Phelan also highlighted the growing threat of cyberattacks and the need to modernize the Navy’s digital infrastructure. His top cybersecurity concerns include safeguarding defense-critical infrastructure and weapon systems, increasing cyber force readiness, and modernizing legacy systems.
“Removing legacy IT, modernizing cryptography, implementing zero trust, and hardening classified networks all contribute to transforming the Department of the Navy,” Phelan told lawmakers.
He praised recent progress made by the Navy and Marine Corps in operational cybersecurity and noted that the Navy delivered the Department of Defense’s first fully validated Zero Trust architecture. He pledged to support further collaboration among cyber leadership, CIOs, and service stakeholders to ensure tangible outcomes.
Information Warfare and Workforce Readiness
With information warfare now a major focus area—spanning cyber operations, intelligence, cryptology, and electronic warfare—Phelan said he would request a full briefing on the Navy’s “information dominance” capabilities if confirmed. He aims to align workforce development and innovation priorities with the joint force’s modernization goals.
“If confirmed, I will empower the Naval Information Warfare Community to recruit, retain and promote the most skilled and qualified Sailors to conduct integrated fires and deter threats,” he wrote.
A Businessman at the Helm
Phelan’s appointment comes as the Pentagon navigates internal reviews, hiring freezes, and efforts to reduce the civilian workforce by over 50,000 positions. Defense Secretary Pete Hegseth recently granted service secretaries the authority to request exemptions to the hiring freeze.
“Congratulations John Phelan on being confirmed as the 79th Secretary of the Navy!” Hegseth wrote on X. “Looking forward to supporting our warfighters together.”
Eric Fanning, President and CEO of the Aerospace Industries Association, welcomed the confirmation, noting that Phelan’s business acumen “will infuse the Navy with a strategic approach to expanding our fleet to meet deterrence needs across the world.”
Leadership in Transition
Phelan’s confirmation adds to a wave of top Pentagon appointments under President Donald Trump. The Senate confirmed Stephen Feinberg as deputy defense secretary on March 14, while Daniel Driscoll was confirmed as Army secretary in February. Earlier this month, Katie Arrington was appointed acting Pentagon CIO.
However, key leadership gaps remain. Trump has not yet nominated a replacement for Adm. Lisa Franchetti, who was removed as chief of naval operations in March. Adm. James Kilby is currently performing CNO duties in an acting capacity.
Upcoming confirmation hearings are scheduled for Troy Meink (Air Force secretary), Michael Duffey (undersecretary for acquisition and sustainment), and Emil Michael (undersecretary for research and engineering), among others.
As Phelan takes the reins of the Navy during a period of rapid change and geopolitical challenge, his ability to translate business discipline into defense leadership will be closely watched.
