Congress funded the F/A-XX project to the tune of $454 million in fiscal 2025. However, the Defense Department wants to slash spending to just $74 million in 2026, according to budget documents viewed by DefenseScoop. Meanwhile, the DOD plans to spend $3.5 billion in the next fiscal year on the Air Force’s next-gen fighter, the F-47.

The 2026 request “slows” the Navy’s program “due to industrial base concerns of two sixth-generation programs occurring simultaneously,” according to the document.

Lawmakers this week expressed concern about the projected cuts.

“We know that in the FY ’25 [continuing resolution] there was $453.8 million … put towards that — I’ll get the number right — and in reconciliation $500 million. So you can see Congress is consistently pushing ahead and saying, ‘This is … where we need to go.’ And we’d be a little surprised if the support for this fell off, especially since we’re looking at the requirements and not seeing any change there,” Rep. Rob Wittman, R-Va., said Thursday during a House Armed Services Committee hearing.

Wittman asked Chairman of the Joint Chiefs of Staff Gen. Dan Caine, who was testifying during the hearing, if the requirements that military officials previously laid out for that platform are still the same.

“As we look at the threat picture out in the Pacific, the requirements themselves I think are still valid. I think it comes down to a question that many of the folks on the committee have talked about, and that’s the ability [for industry] to produce at a particular time. And I’ll defer to my civilian leaders on the timing and synchronization [of] that program. But we do need, you know, capability that is mobile, whether it’s F/A-XX or others, that enable us to win on the battlefield to the future,” Caine replied.

Secretary of Defense Pete Hegseth, who was testifying alongside Caine, said the fiscal 2026 budget request “funds the complete design of F/A-XX.”

However, he suggested the Pentagon is reevaluating plans for the program.

“We’re certainly reviewing it — working with the Joint Staff, working with the [combatant commands] — at its application around the globe. So it’s in the mix, but we recognize we need — we also need a capability as quickly as possible for the threats that we face,” Hegseth said.

Navy officials have said the F/A-XX is expected to be extra stealthy, have significantly longer range than the fighter jets that are currently in the fleet, and incorporate artificial intelligence capabilities.

The service also wants the manned jet to be able to team up with advanced drones.

“It will also, with the integration of AI and other technical advantages, allow us to have increased battle space management. And it will be our next platform that, instead of being man in the loop, will truly be man on the loop and allow us to have fully integrated architecture with our unmanned systems that we’re going to be fielding with concepts like the CCAs — whether it’s those collaborative combat aircraft, the small increased mass, or also teaming with larger unmanned vehicles that we may foresee into the future,” Rear Adm. Michael “Buzz” Donnelly, then-director of the air warfare division, N98, in the Office of the Chief of Naval Operations, said at the Navy League’s Sea-Air-Space conference in April.

At the same conference, acting Chief of Naval Operations Adm. James Kilby said the Air Force isn’t the only service that needs a sixth-gen fighter for a potential conflict against advanced adversaries like China.

“We need F/A-XX in the United States Navy,” he said. “We’re talking about a fight in the Pacific. We fight together as a joint force, so having that capability is very important for us.”

Many observers had expected the service to award a large development contract to either Boeing or Northrop Grumman in the spring.

However, Secretary of the Navy John Phelan, who stepped into his new role in March, told lawmakers Wednesday that officials continue to look at force structure needs for the future.

“As it comes to next-gen fighters … we’re looking at the full composition of the air wing of the future. And so we have to focus on the capabilities and technologies for years to come that are going to win, and that includes manned and unmanned platforms that we have to look at,” he said during a House Armed Services Committee hearing.

He noted that he also has concerns about the industrial base and how some of the Navy’s other programs are faring.

“I do not have a lot of confidence. All of our programs are in trouble. We have number of companies that are not performing. We’ve got to get those done. So I think looking at this system, sixth-gen is important. And I know it’s important to the admiral [Kilby], he should always give you his best military advice. I think we’re looking at the whole panacea of what we’ve got and then … what makes the most sense to use in the future. And so I think we have to get more confidence in the [industrial] base,” Phelan said.

“This is a system that you know, as I said in my opening statement about readiness, readiness means, like ready, like today and then in the future — and how is that future changing and how do we think about that? And so that’s we’re looking at it, evaluating it, and trying to make sure that we’re not back here in two years saying, ‘We told you it was going to cost X, it’s actually going to be X plus 50, and by the way, it’s going to be late,’” he told the committee.

Rep. Jen Kiggans, R-Va., said the Pentagon shouldn’t be cutting funding for the F/A-XX.

“We need that money for a lot of reasons,” she said at Wednesday’s HASC hearing. “China is … already testing and flying J-50s and J-36 fighters, which is their sixth-generation fighter. The Navy to be competitive with that has got to make that investment.”

The Trump administration has not yet submitted its full fiscal 2026 budget request to Congress. Lawmakers may end up appropriating much more money for the F/A-XX than the Defense Department proposes.

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Speaking Monday at the AI+Expo hosted by the Special Competitive Studies Project, Navy Secretary John Phelan told attendees that his organization has welcomed the DOGE team at the Pentagon.

“We’ve embraced the DOGE agency to come in basically to help us figure out processes and things that we’re doing that don’t make sense, figuring out contracting things that we’re doing that don’t make sense, figuring out IT systems that are built on legacy platforms that end up not talking to one another, figuring out systems that we just do because someone in the room has decided let’s not change it. So, you know, they’ve been very effective with us,” Phelan said.

In one fell swoop in April, the SECNAV ordered the termination of hundreds of millions of dollars in IT contracts — include those for the Naval Maintenance, Repair and Overhaul (NMRO) program — and unrelated grants as part of a broader push at the Defense Department to slash spending that the Trump administration deems wasteful.

He estimated that the Navy has saved almost a $1 billion from chopping expenditures singled out by DOGE, so far, which have included moves like canceling “redundant” IT contracts.

Savings could be reinvested in other priorities, such as improving the living conditions of troops, he suggested.

“You can fix a lot of barracks” with that money, Phelan said.

Defense Secretary Pete Hegseth moved last week to further rein in the Pentagon’s IT spending, issuing a memo aimed at limiting the Defense Department’s hiring of consultants.

Prior to execution of a new IT consulting or management services contract or task order with an integrator or consultant, DOD components must obtain approval from Deputy Secretary of Defense Stephen Feinberg or his designee. Approvals or denials will be based on submission of a cost-benefit analysis, evidence of evaluation of alternatives, and justification that the efforts to be covered by the contract cannot be in-sourced anywhere within the department or acquired from a direct service provider, according to Hegseth’s edict.

Hegseth issued another directive last week giving DOGE personnel even more oversight of DOD contracting efforts going forward, allowing them the opportunity to provide input on almost all unclassified contracts.

At Monday’s conference, Phelan noted that Hegseth has talked about the need to cancel consulting contracts.

“We had a number of … consulting contracts that did not really make a tremendous amount of sense,” the SECNAV said.

If consultants want to work with the Navy, they need to show that they can save the department money, he added.

“My message to consultants is … it’s not going to be just we pay you, come in and do this. Show me meaningful savings,” Phelan said. “It’s got to be tied to results. And I think that’s one of the things we don’t do a good enough job on is tying things to outcomes and results. In our contracts we don’t do a very good job of it, and across shipbuilding, IT, consulting, everything. So DOGE has been very good to work with. I look forward to the next round and working with them to see what they come up with next and trying to remove a number of things that don’t make sense.”

Phelan’s remarks on Monday about recent and future cuts came as the Navy and Marine Corps are poised to consolidate legacy and standalone IT networks into an enterprise information ecosystem as part of a large-scale modernization campaign that seeks to reduce the cyberattack surface, improve user experience and optimize technology investments.

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Robotic platforms not only keep sailors out of harm’s way, but they provide opportunities to expand the sea service’s warfighting capacity faster and at less cost than building traditional Navy vessels. They’re a key element of Project 33 and the CNO Navigation Plan that was released last year.

Plans for the upcoming industry engagement, slated for June 17-18 in the Washington metro area, were laid out in a special notice posted Friday on Sam.gov.

“The Future USV program will be an open ocean, 25+ knot, high endurance, non-exquisite, autonomous vessel. The vessel will be built to commercial standards and will provide the interfaces, payload deck area, and support for two forty-foot equivalent unit (FEU) containerized payloads, each weighing 80,000 [pounds],” officials wrote.

The Navy has already been experimenting with fairly large USV prototypes in recent years, such as the Sea Hunter, Sea Hawk, Mariner and Ranger.

The service has also been conducting market research. Last year, it released a request for information on medium unmanned surface vehicles, indicating that officials were interested in vessels less than 200 feet in length and under 500 tons displacement.

That RFI noted that the unmanned maritime systems program office (PMS 406) — which is also hosting next month’s industry engagement on Future USV — was “contemplating an accelerated approach with industry to leverage existing, manned or unmanned surface ship designs that can be modified to enable rapid delivery of an unmanned or optionally unmanned surface ship capability.”

The special notice about the Future USV program didn’t identify the specific types of payloads the Navy wants the platforms to carry or the missions they will perform.

The service had previously envisioned acquiring medium USVs for intelligence, surveillance and reconnaissance missions as well as larger USVs with offensive strike capabilities. However, earlier this year, Rear Adm. William Daly suggested that officials may now be focusing on a platform that can be outfitted with containers capable of carrying both types of payloads, according to news reports.

Although the upcoming industry briefing is restricted to U.S. contractors, more information about the Navy’s plans for the Future USV program could become publicly available when the Defense Department releases its fiscal 2026 budget justification documents in the coming weeks.

Meanwhile, John Phelan, the new secretary of the Navy, has indicated he’s keen on adding uncrewed platforms to the fleet.

“The unique capabilities that unmanned systems bring to the naval and joint force are a tremendous force multiplier, and I believe the Department of the Navy should appropriately and adequately resource the right solutions and doctrine, organization, training, personnel and facilities that support these capabilities, particularly in the Indo-Pacific,” he wrote in response to advance policy questions from senators ahead of his confirmation hearing in February.

“By providing persistent surveillance, intelligence gathering, defensive, and strike capabilities, unmanned systems will enhance lethality and serve as a strong and efficient deterrent to quickly respond to provocation while reducing risks and maintaining flexibility in the region,” Phelan wrote, noting that such tools could help the United States prevail in a potential future conflict against a peer competitor such as China.

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The moves — outlined in a pair of memos issued to the chief of naval operations, Marine Corps commandant, Navy assistant secretaries and general counsel — are pursuant to Defense Secretary Pete Hegseth’s “commitment to strategically rebuild our military, restore accountability to the Department of Defense, cut wasteful spending, and implement the President’s orders,” Phelan wrote.

The IT contracts axed by the SECNAV include those for the Naval Maintenance, Repair and Overhaul (NMRO) program.

The NMRO system was designed to provide mobile access for users, embedded job performance aids, lobby functions providing customizable work areas of interest, and 3D interactive renderings of ship systems enabling sailors to click on an object to access technical and logistics data, according to a news release last year from Fleet Force Command.

“The NMRO logistics program is critical software for the Navy. However, for 5 years systems integrators have over-engineered the software to the point where it is unusable. Upon the recommendation of Navy leadership, the current contracts under the NMRO program shall be terminated. This will allow the Program Office to apply the savings towards a new strategy to meet our needs,” Phelan wrote in a new memo obtained by DefenseScoop from a Navy official.

He also directed the Navy’s chief information officer to prepare a new acquisition strategy by July 31, along with management review of the program.

“Collectively, these contract terminations represent over $568 million in total contract value, which we estimate can allow the Navy to repurpose up to $200 million in taxpayer funds in a more effective manner,” Phelan wrote.

“I commend the Navy leaders who raised this opportunity that will result in a more effective fighting force. Moreover, I encourage leaders across the Department of the Navy to follow this example in identifying opportunities to eliminate wasteful spending which we can then re-invest into critical mission needs,” he added.

In a separate memo obtained by DefenseScoop, Phelan ordered the termination of 45 other contracts and grants. He said the cuts target “wasteful spending” on climate change, DEI, social science, and “other activities which are not aligned with DoD and DoN priorities.”

The cuts include grants for studies of “Persuasion, Identity, and Morality in Social-Cyber Environments” and “engendering and leveraging trust in longitudinal human-AI interactions,” among others, according to the memo.

“Collectively, these 45 terminations represent over $87 million in total award value, which we estimate can save up to $41 million in taxpayer funds the Navy can better apply to critical priorities,” Phelan wrote.

The cuts come as Pentagon leadership has been working with the Trump administration’s Department of Government Efficiency (DOGE) team, led by tech titan and presidential adviser Elon Musk, to review spending.

“I commend the DOGE team for finding these opportunities to help save the Navy and increase our readiness and warfighting capability,” Phelan said in a video posted on X, the social media platform owned by Musk. “Stay tuned — there’s more to come.”

Earlier this month at the Sea-Air-Space conference, Navy CIO Jane Rathbun noted that the Trump administration’s DOGE team was examining the Navy’s software enterprise and use of commercial software.

“It’s actually being led through the DOD CIO, and it is collaborative and they are asking for information from us. They are asking for information from the industry partners and really understanding how we buy, how we consume, and how we could do it more effectively,” she told DefenseScoop.

Hegseth has also been pushing to rein in Pentagon spending on IT services contracts. About two weeks ago, he issued a directive ordering the termination of several major contracts, with estimated savings of more than $4 billion. He also directed the Pentagon’s chief information officer to draw up plans for in-sourcing, among other measures.

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In his first major speech as Navy secretary, businessman-turned-SECNAV John Phelan — who was sworn in March 25 — noted that he’s looking to eliminate “waste and inefficiencies” so the sea services can get more bang for their buck as they pursue modernization.

“I intend to bring a huge focus to the Department of the Navy’s procurement and acquisition strategy,” Phelan said Wednesday at the Sea-Air-Space conference.

“I will ensure we will receive the appropriate risk-adjusted rate of return on our investments,” he said. “In many ways, warfare is like a business. Our military must operate at optimal efficiency, maximizing its resources to ensure that every American tax dollar spent delivers results that strengthen our defense.”

Phelan cited underinvestment in workforce and manufacturing capacity, “gold-plated” requirements and bureaucratic decision-making as problems that have led to huge cost overruns, extremely late deliveries and maintenance issues.

“In the coming weeks, I will review our acquisition systems and identify how we can streamline and reform them. I will work across the department and especially with industry, to find solutions. We will restore and maintain operational readiness and fiscal responsibility,” he said Wednesday at the conference.

He added: “We are currently in the early stages of reviewing all of our contracts and also understanding how the decision process works. You know, from start to finish, I’m still trying to understand why things take as long as they do, I’m trying to understand why they cost as much as they do. You know, I see numbers on things that are eye-opening to me.”

Phelan noted that he intends to meet with the Navy’s major contractors as well as other companies that would like to do business with the organization.

The department needs to encourage more competition in the industrial base and expedite some of its acquisition processes to make things easier, he suggested.

Under Phelan, the department will also be “moving to a philosophy of more shared risk” with industry, the SECNAV said.

“We demand a lot from the shipbuilding industry, from the private sector — and the private sector gets things in return. And I think that you’ve got to determine what is fair and what is right. And if we’re being too demanding and too exacting, then they should be compensated for the risk we’re asking them to take. At the same time, you know, we need to make sure that we’re being adequately compensated for the risks we’re taking and we’re getting what we ask for. So I think there’s got to be an equal balance, a more fair-partnership approach with the shipbuilding industry,” he said.

Phelan isn’t the only senior official pushing for efficiencies. The Trump administration’s DOGE team is already reviewing the service’s software enterprise.

“It’s all about making the right investments in modernizing, but modernizing with an eye towards effectiveness and efficiency. We’ve got this new administration. We’ve got the DOGE in working with us, and they’re focused on effective consumption of commercial software. Are we doing the best job we can deliver in buying and utilizing the software that we have? So I think the Department of Defense spends like $5.2 billion on just software. And how can we make sure that we’re buying it effectively and getting the biggest bang for our buck … out of that consumption?” Navy Chief Information Officer Jane Rathbun said Tuesday at the Sea-Air-Space conference.

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Caine, President Donald Trump’s pick to be the next chairman of the Joint Chiefs of Staff, is a former F-16 pilot who held a variety of roles throughout his 34-year military career, including with the active-duty Air Force and National Guard, the special operations community and the CIA.

But at Tuesday’s hearing with the Senate Armed Services Committee, he also highlighted his private sector experience.

“I’ve been an entrepreneur and investor in the business sector while a citizen soldier in the National Guard,” Caine noted. “I’ve also had the privilege of serving alongside incredible business leaders, starting and scaling companies as an entrepreneur. And along the way, I learned what a different kind of grit looks like. Our American entrepreneurial spirit is a force multiplier, and my time as an entrepreneur has made me a better general officer and leader. And if confirmed, I’ll bring more of that spirit into the joint force.”

After his recent retirement from the military, Caine became chairman of the national security advisory board at Voyager Space, a venture partner at Shield Capital, an advisor for Thrive Capital and a venture partner at Ribbit Capital, according to his LinkedIn bio.

“I also may be the only officer ever nominated for this position with experience in the venture capital world, an experience I will draw on as the DoD looks to modernize its business systems and revitalize America’s Defense Industrial Base,” Caine wrote in his responses to advance policy questions from senators.

Caine’s confirmation process comes as the Pentagon is trying to buy more technologies from the commercial sector, including software and hardware, and bring more nontraditional companies into its acquisition fold. The department’s Silicon Valley-headquartered Defense Innovation Unit has been spearheading many of these efforts.

Caine told lawmakers that the U.S. commercial marketplace is “teaming with innovative solutions” for defending the nation. However, the biggest challenge is bringing them into the force.

“The Department must work to exploit these solutions via rapid prototyping programs, defense innovation organizations, and congressionally granted authorities,” he wrote.

The DOD needs to make investments that promote resilient supply chains, workforce readiness, closer collaboration with commercial industry, flexible acquisition, and support from international allies and partners, he suggested.

“The Joint Force should re-evaluate its interactions with industry and fight for access to the commercial space, leveraging organizations like the Defense Innovation Unit,” Caine wrote.

The Pentagon’s research and engineering directorate has been focusing on 14 “critical technology areas” as it pursues next-generation capabilities, including hypersonics, FutureG wireless technology, advanced materials, integrated network systems-of-systems, directed energy, integrated sensing and cyber, space technology, quantum science, trusted AI and autonomy, microelectronics, renewable energy generation and storage, advanced computing and software, human-machine interfaces, and biotechnology.

Caine noted that DOD also needs to spend more money on advanced manufacturing technology.

“Investments in advanced manufacturing will have impacts across the listed 14 critical technology areas and enable the United States to produce complex components and systems more quickly and cost effectively. If confirmed, I’ll work with [Defense] Secretary [Pete] Hegseth to refine the development and acquisition of these technologies in order to enable rapid employment to meet the needs of the Joint Warfighter to fulfill the Administration’s strategy,” he wrote.

If confirmed, he promised to work with Hegseth and his team to evaluate the budget for next-gen capabilities.

Caine told senators that there’s “room for improvement” in how investments in next-gen capabilities are synchronized across the department.

“There is a lot of good work going on, but I do have some concerns that innovation entities are actually colliding with each other in the incubation process. The DOD must have a greater level of collaboration between entities in order to maximize the return on the [U.S. government’s] invested capital,” he wrote.

He said he’s “encouraged” that there are new leaders coming into the department with substantive business backgrounds. Although he didn’t mention any by name, Deputy Secretary of Defense Stephen Feinberg, Navy Secretary John Phelan and other senior officials were wealthy businessmen and investors when they were tapped by Trump to serve on his national security team during his second term.

Pentagon leaders need to have an “entrepreneurial mindset” as they pursue reforms, Caine said.

Trump surprised many in February when he announced Caine, an unconventional pick, as his choice for chairman after firing Gen. Charles “CQ” Brown.

Caine is expected to garner enough votes to get confirmed. Republicans have a majority in the Senate with 53 GOP members. Apart from Hegseth, who narrowly won confirmation in January, Trump’s nominees for top Pentagon posts during his second term have been confirmed by comfortable margins during final voting.

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The SECNAV is the top civilian responsible for leading the Department of the Navy, which also includes the Marine Corps. Phelan, a businessman and co-founder of MSD Capital, was nominated for the post by President Donald Trump.

Ahead of his confirmation hearing last month, Phelan told lawmakers that he planned to push for more investment in uncrewed systems and enabler technologies — such as autonomy, mission systems and communications — for manned-unmanned teaming by the Navy and jointly with the other military services.

He’s coming into the job as the sea service is pursuing a “hybrid fleet” and trying to accelerate the fielding of robotic platforms to counter China, including via Project 33. The Marine Corps is also pursuing collaborative combat aircraft via its Penetrating Affordable Autonomous Collaborative Killer-Portfolio (PAACK-P) program, as well as loitering munitions.

Phelan also noted the need for a variety of counter-drone tools, informed by recent Navy efforts to thwart attacks by the Houthis and protect military and commercial vessels in the Red Sea. Some defense officials have said the military needs cheaper options for shooting down inexpensive adversary unmanned aerial systems.

“The Red Sea engagements provided valuable lessons. While cost exchange ratios are a useful metric against low-cost threats, they don’t encompass the full complexity of naval warfare. I fully support a Captain utilizing the most effective means available to eliminate threats and protect their multibillion-dollar ship and crew. However, we must provide them with a wider variety of reliable options beyond their current limited and costly solutions. If confirmed, I will prioritize expanding development of layered ship defense capabilities, including guns, directed energy, loitering munitions, and other innovative technologies,” Phelan wrote in response to advance policy questions from senators.

The Marines are also gung-ho about counter-drone tech, having recently awarded a $642 million contract to Anduril to deliver, install and sustain a family of systems to protect its installations from small UAS.

Phelan also weighed in on digital threats that the department is confronting expressing his view that the top cyber challenges facing the Navy are securing defense critical infrastructure and weapon systems, increasing cyber force readiness and executing critical modernization efforts.

“Removing legacy information technology, modernizing cryptography, implementing zero trust, and hardening classified networks all contribute to modernizing the Department of the Navy. Importantly, the readiness of our military and civilian workforce is critical for achieving our priorities in cyberspace. It is my understanding that the Navy and Marine Corps have made notable progress in strengthening cybersecurity and resiliency in operational technology environments and in improving the readiness of their personnel in the Cyber Mission Force [overseen by U.S. Cyber Command],” he wrote.

“Additionally, the Department of the Navy recently delivered the first fully validated implementation of a true Zero Trust architecture in the Department of Defense. If confirmed, I will expect the [Navy’s principal cyber adviser] to work closely with the Chief Information Officer and Navy and Marine Corps stakeholders to drive tangible outcomes in these areas,” he told lawmakers.

The department is also placing greater emphasis on information warfare, which includes intelligence, electronic warfare, cyber, cryptology and networks, among other areas.

Phelan told senators that, if confirmed, he would request a detailed briefing on the Navy’s “information dominance” capabilities and determine resourcing, workforce and innovation priorities to integrate into the joint force’s modernization efforts.

“If confirmed, I will empower the Naval Information Warfare Community to recruit, retain and promote the most skilled and qualified Sailors to train and conduct integrated fires to effectively deter and combat threats to our Nation. These actions align to the Department of the Navy Cyber Strategy which calls for effective sequencing and synchronization of non-kinetic effects to generate decisive advantages,” he wrote.

Phelan — who has no previous military experience — will take the helm of the Navy as the Pentagon is in the midst of DOGE reviews, hiring freezes and efforts to reduce the DOD’s civilian workforce by more than 50,000 people. Defense Secretary Pete Hegseth recently issued a memo giving service secretaries the authority to request and authorize certain exemptions to the civilian hiring freeze. Last week, the department released another memo with a list of more positions that are eligible for exemptions.

“Congratulations John Phelan on being Confirmed as the 79th Secretary of the Navy!” Hegseth wrote in a post on X Monday evening. “Looking forward to supporting our warfighters together.”

In a statement, Aerospace Industries Association (AIA) President and CEO Eric Fanning said the new SECNAV’s “business acumen will infuse the Navy with a strategic approach to expanding our fleet to meet deterrence needs across the world, especially in the Indo-Pacific,” adding that his “commitment to readiness, effectiveness, and efficiency aligns seamlessly with our industry’s priorities. We look forward to collaborating with Secretary Phelan to ensure our Sailors are equipped with the finest equipment in the world.”

Phelan’s confirmation marks the latest success by the Trump administration in filling high-level posts at the Pentagon.

On March 14, the Senate confirmed Stephen Feinberg as deputy secretary of defense to serve as the Pentagon’s No. 2 under Hegseth. Trump’s pick for Army secretary, Daniel Driscoll, was confirmed in late February. And earlier this month, Katie Arrington was appointed acting Pentagon CIO.

However, other nominees for high-level Pentagon jobs have yet to be confirmed, such as Lt. Gen. Dan “Razin” Caine as chairman of the Joint Chiefs of Staff and Troy Meink as Air Force secretary, among others.

It’s also uncertain who will be the next chief of naval operations working alongside Phelan to lead the sea service. Last month, Trump fired Adm. Lisa Franchetti as CNO and hasn’t nominated a replacement. In the meantime, Adm. James Kilby, vice chief of naval operations, is performing the duties of CNO.

Other key nominations for senior positions that have yet to be confirmed include Michael Duffey to be undersecretary of defense for acquisition and sustainment, the Pentagon’s top weapons buyer; Emil Michael to be undersecretary of defense for research and engineering, a role tasked with fostering next-generation military capabilities and overseeing critical technology areas; and Elbridge “Bridge” Colby to be undersecretary of defense for policy, among others. A confirmation hearing for Meink, Michael and Duffey is scheduled for Thursday.

Updated on March 25, 2025, at 9:50 AM: This story has been updated to include comments from Defense Secretary Pete Hegseth and AIA President and CEO Eric Fanning.

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If confirmed, Phelan — a businessman and co-founder of MSD Capital — would take the helm of the department as it pursues new drones and a “hybrid fleet” of manned and unmanned systems, among other modernization efforts. Service leadership is also in flux in the wake of Trump’s firing of Chief of Naval Operations Adm. Lisa Franchetti last week.

“I understand that the F/A-XX next-generation [fighter] aircraft, offering significant advancements in operational reach and capacity within contested environments, is intended to enable Carrier Strike Groups to outpace adversaries while maintaining naval air dominance. I also understand the Navy, Marine Corps, and Air Force are collaborating closely to ensure interoperability through shared enabling technologies like autonomy, mission systems, and communication architectures. This collaborative approach, encompassing both manned and unmanned platforms, including Collaborative Combat Aircraft (CCA), will maximize operational effectiveness and flexibility across the services,” Phelan wrote in response to advance policy questions from the Senate Armed Services Committee ahead of his confirmation hearing Thursday.

“In my view, aligning technology development and operational requirements will ensure the Services are poised to fully leverage next-generation unmanned systems, ultimately enhancing capabilities and long-range mission effectiveness,” he added.

The Pentagon envisions highly autonomous CCA drones serving as robotic wingmen to manned fighter jets or performing separate missions. The Navy, Marine Corps and Air Force are each pursuing their own variants, which they hope to field in the coming years. The Air Force is widely seen as being ahead of the other branches in their pursuit of these types of platforms.

The Navy also aims to develop and field a next-generation manned fighter jet, currently referred to as the F/A-XX, that it hopes to field in the 2030s. An Air Force decision about the future of its manned, next-gen stealth fighter program— which was part of the Next Generation Air Dominance initiative — was postponed late last year amid the transition in presidential administrations.

Phelan told lawmakers that he would advocate for “smart investments” in the Navy’s Collaborative Combat Aircraft program, highlighting the need to foster industry competition, including non-traditional contractors, with the aim of driving down costs, accelerating timelines and maintaining the Navy’s technological superiority.

He also noted that he would prioritize “timely” modifications to Nimitz-class aircraft carriers for unmanned system integration.

Defense officials have expressed a desire to ensure interoperability between the services’ future crewed and uncrewed systems. Phelan — who has never served in the military — endorsed that idea in his comments to senators.

“I understand the Navy, Marine Corps and Air Force are aligned on key enabling technologies, including mission systems, autonomy architecture, and communication and command architecture. This alignment ensures that both manned and unmanned platforms can operate effectively together, enhancing interoperability across branches. If confirmed, I will commit to continue collaboration with the other services and the Office of the Secretary of Defense to ensure that systems are compatible and ready to integrate seamlessly in joint operations, supporting interservice coordination and maximizing mission effectiveness,” he wrote.

The Navy isn’t just looking to field next-gen unmanned aerial systems. It’s also pursuing new unmanned surface vessels and unmanned underwater vehicles, as it works to build a so-called hybrid fleet of crewed and uncrewed platforms.

Accelerating the fielding of those types of systems to deter China in the Indo-Pacific was part of Franchetti’s Project 33 and CNO Navigation Plan, which she unveiled a few months before she got fired.

The Navy has also been playing a key role in the Pentagon’s Replicator initiative, which was launched during the Biden administration with the goal of fielding thousands of “all-domain attritable autonomous systems” by August 2025.

The sea service has also set up new organizations, such as Task Force 59 and robo-ship squadrons, to work through concepts of operation and other issues that need to be addressed.

Phelan didn’t refer to Replicator by name in his written comments to members of the Senate Armed Services Committee, but he suggested that he’s in favor of those types of efforts.

“The unique capabilities that unmanned systems bring to the naval and joint force are a tremendous force multiplier, and I believe the Department of the Navy should appropriately and adequately resource the right solutions and doctrine, organization, training, personnel and facilities that support these capabilities, particularly in the Indo-Pacific. There can be no dispute that unmanned systems are now very much part of the landscape of modern war,” he wrote.

“Also revealed is the rapid pace of innovation for these systems, as well as the rapid operational adoption of the evolving systems in battle,” he added. “If confirmed, I will thoroughly examine this issue to ensure the Department of the Navy investments are properly prioritized in this area by ensuring appropriate system selection through early, data-driven analysis. This will include championing joint investment in enabling technologies like autonomy, mission systems, and communications to guarantee interoperability across services and with coalition partners, for example through ongoing all-domain attritable autonomous systems efforts.”

Phelan is the second of Trump’s service secretary nominees during his second term to have a confirmation hearing. Earlier this week, Daniel Driscoll was confirmed as secretary of the Army. A confirmation hearing for Trump’s pick for Air Force secretary, Troy Meink, has not been scheduled.

Trump’s nominee for deputy defense secretary, Stephen Feinberg, also testified earlier this week.

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Driscoll has been serving as a senior adviser to JD Vance, Trump’s running mate and soon-to-be vice president.

“As a former Soldier, Investor, and Political Advisor, Dan brings a powerful combination of experiences to serve as a disruptor and change agent. Dan graduated from UNC-Chapel Hill in three years to join the fight with the U.S. Army. After completing U.S. Army Ranger school, Dan deployed with the 10th Mountain Division as a Cavalry Scout Platoon Leader in support of Operation Iraqi Freedom,” Trump said in a post on his Truth Social account. “Dan will be a fearless and relentless fighter for America’s Soldiers and the America First agenda.”

Like Vance, Driscoll is a Yale Law School graduate. He also worked in venture capital and private equity, Trump noted.

If his nomination is confirmed, Driscoll would lead the Army as the service is pursuing sweeping modernization initiatives across the force, including for long-range fires like hypersonic weapons; the network via C2 Fix and C2 Next; robotic combat vehicles; new aircraft and drones under its future vertical lift portfolio; and IT transformation, among others.

Driscoll is Trump’s second pick to serve as a service secretary during his second term. His selection comes about a week after the president-elect tapped John Phelan to be secretary of the Navy.

In a Nov. 26 statement, Trump said Phelan, a businessman and co-founder of MSD Capital, will be “a steadfast leader in advancing my America First vision” and “put the business of the U.S. Navy above all else.”

Unlike Driscoll, Phelan has never served in the military.

If his nomination is confirmed, Phelan would take the helm of the Department of the Navy as the sea services are pursuing new drones and a “hybrid fleet” of manned and unmanned systems, as well as sea- and air-launched hypersonic missiles, among other modernization efforts.

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