Shipbuilding is back, baby. Last Thursday, Trump SecNav pick and investor John Phelan went before the Senate Armed Services Committee and laid out a grim diagnosis of US maritime capabilities.
“The US Navy is at a crossroads. Extended deployments, inadequate maintenance, huge cost overruns, delayed shipbuilding, failed audits, subpar housing, and sadly, record high suicide rates are systemic failures that have gone unaddressed for far too long, and frankly, this is unacceptable,” he said.
He said that the US had lost the race for naval dominance to China—by a lot—and slammed the Constellation-class frigate program. “This program is a mess, from what it looks like,” he said.
Phelan is an investment banker and major Trump donor who gave nearly $1M to Trump and Republicans during and after the 2024 elections. He has no prior military or defense experience.
In the weeds: Like many of Trump’s military nominees (Hegseth and Feinberg among them), Phelan seems to be a big fan of an audit. If confirmed, he said he would apply a fine-toothed comb to the service’s programs to figure out what the heck is taking so long. Both the Navy and Coast Guard’s shipbuilding programs are billions of dollars over budget and way, way behind schedule.
This comes as companies including Saronic, Saildrone, HavocAI, and Vatn Systems are promising to shake up naval warfare with unmanned fleets. Last month, Saronic unveiled plans for a “shipyard of the future” (and a plush $4B valuation). In his advance policy questions, Phelan highlighted the need for innovation in the Navy.
“Just as in business, the Navy must adapt to evolving challenges, and I will bring a results-oriented, innovation-driven approach to ensure our naval forces remain the most capable and lethal in the world,” he wrote.
American dream: Just after Phelan’s hearing, Trump also announced his pick for Under Secretary of the Navy, Special Operations veteran and failed Virginia senate candidate Hung Cao. In a post on Truth Social, Trump called Cao the “embodiment of the American dream.” Cao is a graduate of the US Naval Academy and served with Special Operations for 25 years. He’s also staunchly anti-DEI in the military.
“As a refugee to our Great Nation, Hung worked tirelessly to make proud the Country that gave his family a home,” Trump wrote, despite maintaining a harsh stance on refugees since coming into office. Both Phelan and Cao are expected to be confirmed.