Navy Under Secretary Hung Cao has been named acting secretary following the departure of John Phelan. Cao and Phelan are both 2026 Wash100 awardees.
The latest leadership transition at the Navy comes at a pivotal time as the service advances major initiatives tied to maritime dominance and acquisition reform. These priorities are expected to take center stage at the 2026 Navy Summit, where experts will discuss autonomous systems and other emerging capabilities transforming naval operations. Save your seat now to hear firsthand insights and connect with key decision-makers shaping the Navy’s future.
In a statement posted on X, Sean Parnell, assistant to the secretary for public affairs at the Department of War, said Phelan is leaving the administration effective immediately. Parnell thanked Phelan for his service to DOW and the U.S. Navy.
Who Is Hung Cao?
Cao is a retired U.S. Navy captain who took on the role of under secretary of the Navy in October.
The Navy diver previously worked as a vice president and client executive at CACI International, where he supported efforts in areas such as electronic warfare, counter-drone technology and enterprise IT.
Cao served in the Navy for 25 years, holding a wide range of leadership positions, including division chief of the Defense Threat Reduction Agency and commanding officer of the Naval Diving and Salvage Training Center. He also served as a special operations officer and explosive ordnance disposal officer, leading underwater missions and counter-improvised threat operations with deployments to Iraq, Afghanistan and Somalia.
He holds a bachelor’s degree in ocean engineering from the U.S. Naval Academy and a master’s degree in applied physics from the Naval Postgraduate School.
The 2026 Wash100 popular vote is underway, with Cao among the top contenders. Cast your vote now to support your favorite GovCon leaders before voting closes on April 30.
What Are the Navy’s Modernization & Acquisition Priorities?
The leadership transition comes as the Navy advances a range of modernization and acquisition initiatives aimed at strengthening operational readiness and long-term maritime dominance.
In 2025, the Department of the Navy established a cross-departmental portfolio to reinforce a warrior ethos and improve the quality of service across the Navy and Marine Corps, with Cao designated to lead the effort.
DON has also launched five additional portfolio acquisition executive offices as part of its transition to a warfighting acquisition system and efforts to accelerate capability delivery.
The service’s broader modernization push emphasizes maritime dominance through shipbuilding investments. The president’s fiscal year 2027 budget request includes $65.8 billion in funding to support shipyard modernization, the development of a Golden Fleet and the procurement of 18 new battle force ships.
