What about the SecNav nominee who has nothing to do with the Navy?

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John Phelan is not yet the Secretary of the Navy (SECNAV) but is President Trump’s nominee for the position, announced back on November 26, 2024. He is currently undergoing the confirmation process, with his Senate Armed Services Committee hearing held on February 27, 2025

John Phelan is a financier and businessman with no prior military or Navy experience. He is the founder of Rugger Management LLC, a private investment firm based in Palm Beach, Florida, and previously served as chairman and chief investment officer at MSD Capital, the firm managing the fortune of Dell Technologies founder Michael Dell. Originally from Coral Gables, Florida, Phelan graduated from Southern Methodist University in 1986 and earned an MBA from Harvard Business School. Beyond his business career, he is an avid art collector, serving on the boards of the Whitney Museum of American Art and the Aspen Art Museum. He also sits on the board of Spirit of America, a nonprofit supporting U.S. troops abroad, which is his most notable tie to military-related causes.

Trump selected Phelan after interviews at Mar-a-Lago, emphasizing his business acumen and leadership skills. In a statement, Trump described Phelan as a “tremendous force for our Naval Servicemembers” who would prioritize “the business of the U.S. Navy above all else” and advance an “America First” vision. Phelan’s nomination has sparked debate due to his lack of military service—making him, if confirmed, the first SECNAV in 15 years without such experience—and his limited public connection to naval affairs. (Critics point to his primary qualification appearing to be his role as a major Trump fundraiser, including hosting a dinner at his $38 million Aspen home in August 2024, while supporters argue his outsider perspective and financial expertise could bring fresh solutions to the Navy’s challenges.)

During his confirmation hearing, Phelan outlined his priorities, heavily emphasizing shipbuilding as directed by Trump, who reportedly texts him—sometimes after 1 a.m.—about issues like rust on Navy ships. Phelan identified shipbuilding delays (e.g., the troubled Constellation-class frigate program, which he called “a mess”), failed audits, and recruitment/retention as the Navy’s biggest challenges. He stressed accountability, noting that in the private sector, failing an audit means being “fired or going to jail,” and promised to review contracts and address systemic issues like cost overruns, inadequate maintenance, and high suicide rates. He also expressed openness to collaborating with allies’ shipyards to boost capacity, a nod to concerns about the U.S. Navy’s fleet shrinking to under 300 ships while China’s grows toward 400.

Phelan’s business background informs his approach: he aims to apply private-sector principles like shared risk in contracts and rigorous financial oversight to the Navy, which manages over 900,000 personnel and a $210 billion annual budget. His nomination awaits Senate confirmation, expected to proceed smoothly given positive reactions from some Navy observers and lawmakers like Senator Roger Wicker, who praised Phelan’s enthusiasm for tackling naval problems after a January 2025 meeting.