In a move that has sparked both intrigue and concern within military and political circles, President Donald Trump has nominated John Phelan—a prominent businessman and major campaign donor with no prior military experience—to serve as the next Secretary of the Navy. This decision underscores the administration’s ongoing strategy of appointing outsiders to key defense positions, aiming to inject fresh perspectives into established military structures.

A Businessman’s Path to the Navy’s Helm

John Phelan, 61, co-founded MSD Capital, a private investment firm established to manage the assets of tech magnate Michael Dell. He also founded Rugger Management LLC, another private investment entity. Beyond his business ventures, Phelan has been an active philanthropist, notably serving on the board of Spirit of America, a nonprofit organization that supports U.S. military personnel through various initiatives. Despite these affiliations, Phelan has neither served in the armed forces nor held a civilian role within the Department of Defense.

During his confirmation hearing before the Senate Armed Services Committee, Phelan addressed concerns about his non-military background. He emphasized that his extensive experience in the private sector equips him with the skills necessary to tackle the Navy’s pressing challenges. “I understand why some might question why a businessman who never wore a military uniform would want to lead the Navy, and I respect those concerns,” Phelan stated. He further elaborated on his commitment to “step outside the status quo” to drive innovation and efficiency within the service.

Addressing the Navy’s Pressing Issues

One of the most critical challenges facing the Navy is the delay in submarine construction and the associated budget overruns. Phelan has outlined a comprehensive strategy to revitalize the U.S. industrial base, aiming to expedite submarine production and control costs. His approach includes incentivizing investments in shipyards, enhancing the appeal of shipbuilding careers, and drawing lessons from successful foreign shipyard operations. Phelan has underscored the strategic importance of the Columbia-class ballistic-missile submarines and advocates for a thorough analysis to identify and address the root causes of existing delays.

In addition to shipbuilding concerns, Phelan has highlighted issues related to the maintenance and appearance of naval vessels. He revealed that President Trump frequently sends him late-night messages expressing dissatisfaction with the condition of Navy ships, particularly regarding visible rust. “It’s terrible. I think they should be ashamed. Would you want to go on that ship?” Phelan recounted, reflecting on the President’s sentiments. This focus on the Navy’s image indicates a broader intent to boost morale and public perception of the naval forces.

Navigating Concerns and Building Confidence

While Phelan’s business acumen is widely recognized, his lack of direct military experience has raised questions about his ability to navigate the complex bureaucratic landscape of the Pentagon and effectively lead a branch as intricate as the Navy. Experts point out that understanding the Navy’s unique culture, traditions, and operational challenges is crucial for effective leadership. Stacie Pettyjohn, a senior fellow at the Center for a New American Security, noted, “It will be difficult for anyone without experience in the Pentagon to take over the leadership of a service and do a good job.”

Despite these concerns, Phelan’s confirmation hearing proceeded without significant opposition, focusing primarily on core service issues. This smooth progression suggests a favorable outlook for his confirmation. If confirmed, Phelan will succeed Carlos Del Toro, the current Secretary of the Navy, and will be tasked with steering the Navy through a period marked by strategic challenges and the need for modernization.