By: Joey Zhang
President-elect Donald Trump has chosen John Phelan, a financier with no military background, as the next US Navy Secretary. If confirmed, Phelan would be the first person in 15 years to lead the Navy without experience in any branch of the armed forces. Notably, LSE’s Phelan US Centre was named after John Phelan and his family in recognition of their generous contributions to the school, in support of scholarships and public engagement on US affairs amounting to at least $10 million. He also serves on LSE’s North American Advisory Board.
Phelan is the co-founder of MSD Capital and the head of private investment firm Rugger Management. He was a major donor to Trump’s 2024 presidential campaign, reportedly hosting the President-elect at his estate in Colorado. Trump has cited Phelan’s “unmatched intelligence and leadership” as ideal for forwarding his ‘America First’ vision, touting full confidence in Phelan’s ability to “put the business of the U.S navy above anything else”.
John Phelan’s relationship with LSE dates back to 1985, when he studied economics and international relations on the General Course programme. As patrons of LSE, John and his wife Amy have supported the US Centre’s popular public events lecture series, and have funded scholarships for over 30 General Course, MSc and PhD students.
The Secretary of the Navy is a civilian leadership role within the state’s second largest military service, responsible for the welfare of over 1 million sailors as well as the management of an annual budget of $250 billion.
While individuals with no military service experience have previously held this position, a background in naval contracts and security matters is common. In contrast, Phelan has had no public connection to the maritime service.
Phelan’s appointment came against the backdrop of a thinly stretched and shrinking Naval force, while contending with a resolutely growing Chinese maritime force. Trump has previously campaigned on expanding the U.S Navy and would need to overcome bureaucratic inertia to do so.
