Phelan, a businessman from Florida and the founder of a private investment firm, is also known for being a significant contributor to former President Trump’s campaign. He was approved by a vote of 62-30 in the Senate. Although he lacks military experience, Phelan garnered bipartisan backing for the position, as reported by The Hill.
During his nomination hearing on February 27, Phelan did not encounter direct opposition; however, some legislators expressed concerns regarding his absence of military service and experience in managing any civilian sector of the Pentagon.
Phelan argued that his background in the private sector equips him to tackle the Navy’s ongoing issues, such as failed audits, workforce challenges, budget overruns, and delays in shipbuilding. He is the founder and chairman of Rugger Management LLC, a private investment firm based in Florida, and has previously held the position of managing partner at MSD Capital, a private equity firm.
In his confirmation hearing, Phelan emphasized that his business experience would be beneficial for the Navy, which is in dire need of reform.
“The U.S. Navy is at a critical juncture, facing extended deployments, insufficient maintenance, significant cost overruns, delayed shipbuilding, failed audits, inadequate housing, and alarmingly high suicide rates—systemic issues that have been neglected for far too long, and this is simply unacceptable,” he stated to the Senate Armed Services Committee last month, according to USNI News. Phelan highlighted that the Trump administration prioritized shipbuilding for the Department of the Navy, which is significantly behind schedule and facing major cost overruns, particularly concerning submarines and large capital warships like aircraft carriers.
“I don’t believe I can emphasize shipbuilding enough,” he remarked during his confirmation hearing when discussing President Donald Trump’s priorities, as noted by USNI.
He pledged to review the Navy’s existing contracts and to ensure a clean audit for the Department of the Navy.I plan to approach the audit in a similar manner. It is essential for me to comprehend the reasons behind the Navy’s inability to successfully complete an audit, he remarked.
He further expressed to the committee that while he values and acknowledges the importance of “stability and tradition,” these elements can hinder adaptability, innovation, collaboration, and trust, ultimately diminishing an organization’s capacity to succeed.
Phelan acknowledged that some may question the appropriateness of a businessman without military experience leading the Navy, and he expressed his understanding of that concern.
“The Navy and the Marine Corps already have remarkable operational expertise among their personnel. My responsibility is to leverage that expertise and enhance it, moving beyond the existing norms to implement decisive, results-driven actions,” he stated, as reported by The Hill.
During his confirmation hearing, Phelan focused on the significantly delayed Constellation-class frigate program, pledging to promptly assess the issues plaguing the initiative. “This program appears to be in disarray,” Phelan informed the committee. “If confirmed, I will quickly investigate this matter to identify the underlying problems. We will return to this committee promptly with our findings as soon as we ascertain the root cause.”
During the hearing, retiring Senator Gary Peters (D-Mich.), whose state is adjacent to the Wisconsin shipyard constructing the frigate, questioned John Phelan about the ongoing program at Fincantieri Marinette Marine. Peters inquired whether Phelan would endorse the initiative as a “long-term cornerstone of the fleet.” “On day one, I plan to review every contract we have, ensuring I fully understand their terms, the flexibility they offer, and which contracts may require modifications, along with the reasons for those changes,” he responded to the panel.Phelan stated, “As I mentioned earlier, I will review this matter and collaborate with the Secretary of Defense and the Deputy Secretary of Defense to gain a comprehensive understanding of all our programs and their interconnections, particularly how this significant program integrates with them. Once I have had the chance to do so, I look forward to returning to you for further discussion.”
The contract with Fincantieri was finalized in 2020, just prior to the conclusion of the first Trump administration. This vessel is intended to play a crucial role in anti-submarine warfare within the surface fleet.
However, USNI News reported that challenges in hiring and retaining a workforce at the shipyard, located on the Menominee River and subject to severe winters in northern Wisconsin, along with ongoing issues in modifying the original design, have potentially postponed the lead ship’s delivery by up to three years, according to a Navy study conducted in spring 2024.
