Trump donor John Phelan confirmed as Navy Secretary

The Senate on Monday voted to confirm John Phelan, a private investment firm founder and a major Trump campaign donor, as the next Navy secretary.

The Florida businessman, who has no prior military experience, was confirmed in a 62-30 vote in the full Senate. 

While Phelan did not draw outright opposition during his Feb. 27 nomination hearing, some lawmakers expressed unease at his lack of prior military service or management of any civilian sector of the Pentagon.

But Phelan argued that his background made him an ideal candidate to fix the issues that have plagued the Navy such as failed audits, workforce management issues, cost overruns and delays in shipbuilding. 

He is the founder and chair of Rugger Management LLC, a private investment firm based in Florida, and also was the managing partner of MSD Capital, a private equity firm. 

Phelan, also a prominent art collector, donated nearly $1 million to Trump's fundraising committee, and nearly a million to other Republican campaign committees, according to public filings. He also held a glitzy fundraiser for Trump at his $38 million Aspen home, charging $25,000-$500,000 per couple, according to The Guardian.

During his confirmation hearing, Phelan promised his outside business experience would help a Navy that desperately needed to be reformed.

“The U.S. Navy is at crossroads, with extended deployments, inadequate maintenance, huge cost overruns, delayed shipbuilding, failed audits, subpar housing, and, sadly, record-high suicide rates,” he told he told the Senate Armed Services Committee.

“These are systemic failures that have gone unaddressed for far too long. Frankly, this is unacceptable.”

He also said that he respects and appreciates “stability and tradition,” but when it “suffocates adaptability, innovation, collaboration and trust, it erodes an organization’s ability to win.”

That line of thinking did not seem to completely win over committee ranking member Jack Reed (D-R.I.), who told Phelan that while he clearly has experience managing large companies, “you do not have any significant experience with the U.S. Navy or the military at large.”

“You will have to quickly learn a great deal about a complex organization, including its hundreds of thousands of sailors and Marines, while the service faces growing international threats and internal challenges,” Reed said.

Phelan replied that he understands “that some may question why a businessman who did not wear the uniform should lead the Navy” and he respected that concern. 

“The Navy and the Marine Corps already possess extraordinary operational expertise within their ranks. My role is to utilize that expertise and strengthen it to step outside the status quo and take decisive action with a results-oriented approach,” he said.