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Navy Secretary John C. Phelan has tapped new Navy Under Secretary Hung Cao to lead a sweeping overhaul of the service and “supercharge the Navy and Marine Corps,” including modernizing its business and IT systems.
Cao, sworn in Oct. 3. by Secretary of War Pete Hegseth, returns to the Department of the Navy with direct orders to “cut red tape and raise standards.”
Phelan said in a memo shared exclusively to Fox News Digital that the reforms are to “sharpen readiness, fix faster, and put sailors, Marines, and their families first” as well as restore the Navy and Marine Corps’ warrior ethos.
Cao, a former U.S. Navy captain, is also a well-known Republican figure, who ran for the U.S. Senate in Virginia in 2024 and in 2025, was nominated by Trump and confirmed as the 35th Navy under secretary.
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President Donald Trump with Hung Cao in 2024. (Anna Moneymaker/Getty Images)
The move follows remarks by Hegseth Sept. 30 to flag and general officers at Marine Corps Base Quantico.
“First and foremost, we must restore a ruthless, dispassionate and common-sense application of standards,” Hesgeth said. “Standards must be uniform, gender-neutral, and high. If not, they’re not standards — they’re suggestions. Suggestions that get our sons and daughters killed.”
Cao’s reforms will start at home and include launching a new inspection system with 60-day repair timelines to overhaul military family housing.
Base dining will shift to healthier, locally sourced menus designed to mirror combat readiness and improve nutrition.
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Secretary of the Navy John Phelan greets sailors during a visit. (Courtesy of the Secretary of the Navy)
Outdated IT and business systems will be replaced with modern, mobile-ready platforms to streamline daily operations and empower sailors with tools that work for the first time.
Beyond quality-of-life upgrades, the Navy is targeting full audit compliance by FY2026 to strengthen transparency and accountability.
Recruiting reforms will eliminate DEI-based waivers in favor of merit-only accessions, while reserve forces will integrate more closely with active-duty training pipelines.
Permanent Change of Station (PCS) orders will move faster, and new policies will expand school choice for military families.
On Guam, infrastructure upgrades, from runways to fuel and housing capacity will harden the island’s role as a vital Indo-Pacific power-projection hub.
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Navy Under Secretary Hung Cao has been tapped to lead a sweeping overhaul of the Navy and Marine Corps. (Anna Moneymaker/Getty Images)
“These aren’t talking points, they’re timelines,” Cao said of the reforms. “We’re ending bureaucratic drift and restoring excellence.”
Cao’s initiatives will also aim to unify family welfare and combat readiness under what Phelan describes as “one quarterback, one playbook.”
On Capitol Hill, Rep. Jack Whitfield, R-Texas, chair of the House Armed Services readiness panel, said Congress would “support the Navy’s renewed focus on lethality and accountability.”
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Department of War Secretary Pete Hegseth arrives at the Pentagon. (AP Photo/Kevin Wolf)
A Democratic staffer on the Senate Armed Services Committee called it “an overdue reset” and confirmed oversight “will track results closely.”
The sweeping, new portfolio integrates quality-of-service improvements, modernization, and reserve reform under a single chain of command.
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“This is about speed, standards, and service,” Phelan said. “When the basics work the first time, ships sail more, aircraft fly farther, and the world’s greatest maritime force only gets stronger.”
Hegseth and Phelan did not immediately respond to Fox News Digital’s request for comment.
