Acting Navy Secretary Cao Calls for New Industry Entrants Amid Munitions and Shipbuilding Budget Surge

Acting Secretary of the Navy Hung Cao, in his first public remarks since taking the role, told an industry audience at the Modern Day Marine exposition on April 28, 2026, that the Navy is open to business with new and alternative entrants as long as they can supply what the service needs.

“I’m asking you, our partners in industry, to help us develop the best things out there, because lives that you saved are going to be our sons and daughters,” Cao said. He added, “And that’s why I’m here today, to tell industry we need to move forward.

The time is now. ” He continued, “I’m not trying to bash the old, the big 8 companies. ” Breaking Defense reported that Cao's comments followed Office of Management and Budget director Russel Vought's remarks at the Sea Air Space conference last week, where Vought launched a broadside at traditional naval contractors.

As an example, Cao addressed munitions procurement. “Why can’t I not buy my munitions from multiple sources? As long as it fits in that tube, as long as it fits on the aircraft, that’s all that matters,” he said.

Cao elaborated, “Let’s just say I need 1,000 of these missiles. S. 4 billion in FY26.

This translates to a 188 percent increase over what was approved in FY26. 2 billion in the FY26 enacted budget. S. maritime superiority and encompasses revamping how the Navy acquires ships as the service moves toward implementing tailored forces to respond to a variety of threats, capitalizing on unmanned systems to augment legacy vessels.

“The Golden Fleet is not just about ships,” Cao said. “It’s the whole concept of reforming acquisitions and getting ships out there from high, low, right? You can’t use a destroyer for everything. It’s like, you don’t want to use a brain surgeon just to suture up some stitches.

” Cao delivered additional remarks during the commissioning ceremony for USS Idaho (SSN 799) at Naval Submarine Base New London in Groton, Connecticut, on April 25, 2026. He was tapped last week to serve as Acting Secretary of the Navy following the departure of Secretary of the Navy John Phelan. Cao previously served as Under Secretary of the Navy.

Naval Academy in 1996. He spent more than 20 years as a naval officer and completed deployments to Iraq, Afghanistan, and Somalia. Cao retired from the Navy as a captain. Following his military service, Cao became a vice president and client executive at CACI International.

The Senate confirmed Cao to his post as Under Secretary of the Navy in October 2025.