Navy Acting Secretary Hung Cao Overhauls Intelligence and Security Teams Amid Uncertainty

The acting secretary of the Navy, Hung Cao, has initiated a series of swift and significant changes to the service’s intelligence and security (I&S) structure during his first week in office, raising concerns among senior officials. According to anonymous sources, Cao fired Chief of Naval Intelligence Rob Townley and scrapped an ongoing reorganization effort that had been spearheaded by former Navy Secretary John Phelan. This move has left the naval intelligence community in a state of confusion, with questions about the future direction of the I&S enterprise.

The abrupt changes have drawn criticism from within the Department of Defense. A senior official expressed concern over the lack of oversight for a multibillion-dollar budget and thousands of personnel globally, especially during a time of war. Cao’s actions include reversing directives issued by Phelan to restructure certain operations and administrative policies. Among these was the termination of the Office of the Chief of Naval Intelligence and Security (OCNI&S), which had been established in summer 2025 to elevate key I&S functions under Phelan’s leadership.

Townley, a former Marine intelligence officer who served as Phelan’s principal civilian advisor on intelligence-related policies, was reportedly blindsided by his dismissal. The cancellation of the reorganization effort has left the Navy’s I&S leadership structure unclear, with both the OCNI&S and DUSN I&S offices now in limbo. Sources describe the situation as chaotic, with personnel feeling distracted and demoralized at a time when focus is critical.

The reversal of Phelan’s reforms has also raised questions about the financial implications. Senior officials estimate that millions of dollars were spent on the reorganization effort over eight months, only to see it effectively abandoned. Critics argue that this decision weakens the Navy’s intelligence capabilities and represents a significant waste of resources. As Cao continues to reshape the Navy’s administration, the long-term impact of these changes remains uncertain.