Navy Announces Major Overhaul Under New Under Secretary Hung Cao

The U.S. Navy has embarked on an ambitious reform agenda under the leadership of new Under Secretary Hung Cao, who has been tasked with revitalizing the service and ‘supercharging’ the Navy and Marine Corps. Appointed by Navy Secretary John C. Phelan, Cao was sworn in on October 3 and has been directed to ‘cut red tape and raise standards.’ The reforms seek to strengthen the Navy and Marine Corps’ warrior ethos, ensuring that all systems—be they business, IT, or personal—operate at the highest level of efficiency and effectiveness. These changes are intended to ‘sharpen readiness,’ ‘fix faster,’ and place the focus squarely on the needs of sailors, Marines, and their families. A former U.S. Navy captain, Cao is also a prominent Republican figure who ran for the U.S. Senate in Virginia in 2024 and was recently confirmed as the 35th Navy under secretary. The initiative follows recent statements by Secretary of War Pete Hegseth, who emphasized the critical importance of restoring high, uniform standards across the military. This includes a commitment to ‘ruthless, dispassionate, and common-sense application of standards,’ which Hegseth argued is essential for the safety and effectiveness of service members. Part of Cao’s plan involves implementing a new inspection system with strict 60-day repair timelines for military family housing, transitioning base dining to healthier, locally sourced menus, and modernizing outdated IT and business systems. In addition, the Navy aims to achieve full audit compliance by FY2026. Recruitment reforms will shift from DEI-based waivers to a merit-only system, and reserve forces will be integrated more closely with active duty training pipelines. Efforts to expedite Permanent Change of Station (PCS) orders and expand school choice for military families are also part of the overhaul. On Guam, infrastructure upgrades are planned to enhance its role as a key Indo-Pacific power-projection hub. These reforms have garnered support from key figures on Capitol Hill, including Rep. Jack Whitfield, R-Texas, who chairs the House Armed Services readiness panel. While a Democratic staffer on the Senate Armed Services Committee called the initiative an ‘overdue reset,’ they emphasized that oversight will be closely monitored to ensure results are achieved. The comprehensive overhaul integrates quality-of-service improvements, modernization, and reserve reform under a single chain of command, with a clear focus on speed, standards, and service to strengthen the U.S. Navy and its global capabilities.