The Navy urgently needs to improve its maintenance of warships, rapidly build new ones, modernize its warfare culture and improve life for sailors and Marines, the newly-appointed secretary of the Navy said Tuesday on a visit to Naval Base San Diego.
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John Phelan, a businessman with no prior military experience, also said the Navy needs to learn how to establish realistic budgets and spend wisely.
His visit is part of a series of trips he’s been making to U.S. naval bases nationwide and overseas — trips he is using to size up Navy operations and is casting as audits.
“I can tell you what we spend every week,” said Phelan, who took office in late March. “But I can’t tell you what it costs (to run the fleet). And that’s because we don’t have an audit … That does not make sense.”
He described the current situation as untenable.
“We’re facing a rapidly evolving threat landscape, and we need to be very abreast of all the emerging technologies that are coming, that are going to define the next era of warfare,” he added.
Navy Secretary John Phelan speaks to sailors on the USS Somerset on Tuesday, Aug. 26, 2025 in National City. (Meg McLaughlin / The San Diego Union-Tribune)
Phelan delivered his remarks aboard the USS Somerset, a 684-foot amphibious transport dock ship the Navy uses to transport and land Marines, along with their equipment and supplies.
The Navy currently has 32 “amphibs,” as they’re known — just one more than required. And they represent one of the fleet’s biggest problems.
“Half of the amphibious fleet is in poor condition, and these ships are not on track to meet their expected service lives,” the U.S. General Accountability Office said in a report last year, blaming a history of deferred and canceled maintenance.
The problem could make it difficult for bases like Camp Pendleton in North County to quickly get all the amphibious ships they need in an urgent situation.
The Navy also is over budget and behind schedule in building many types of vessels, including Virginia-class submarines, the GAO says. The subs are needed in part to replace the older Los Angeles-class subs stationed in San Diego.
The fleet also is struggling to develop a new class of frigates. The first vessel was initially scheduled to be ready next year — but that date has been pushed back by at least three years.
Auditors and the Navy have said the delays and cost overruns stem from a variety of issues, including a shortage of shipyard workers, shipyard space and sound ship designs.
Navy Secretary John Phelan speaks to sailors on the USS Somerset on Tuesday, Aug. 26, 2025 in National City. (Meg McLaughlin / The San Diego Union-Tribune)
Since taking over as secretary, Phelan has visited 11 U.S. shipyards and three in other countries to explore the problem. He told The San Diego Union-Tribune Tuesday he will soon visit General Dynamics-NASSCO and BAE Systems in San Diego to see if they have a role to play in helping the Navy sort out its problems.
He noted during his speech that the Navy has already sought help from Carnival Cruise Lines on possible ways to improve the speed and quality of its ship maintenance.
The dilemma comes as the number of U.S. warships is falling and China’s is sharply rising. Phelan did not dwell on that particular situation, but he repeatedly said the Navy needs to take a more businesslike approach to its challenges.
“We have underspent for a very long time on infrastructure, on our bases, on a lot of platforms,” he said. “And the real problem is all the bills are coming due at the same time.”
Sailors listen to Navy Secretary John Phelan speak the USS Somerset on Tuesday, Aug. 26, 2025 in National City. (Meg McLaughlin / The San Diego Union-Tribune)
