In a bold move shaking the foundations of US Politics, President-elect Donald Trump‘s nominee for defense secretary has fired off a memo to influential financier John Phelan, urging a deep dive into former White House Chief of Staff John Kelly’s recent blistering remarks. The directive, first detailed by The Guardian, has Democrats in the House pointing to leaked video footage that they claim proves the FBI is gearing up for a formal investigation into potential improprieties.
This escalating clash comes at a precarious moment for Trump‘s cabinet assembly, with confirmation hearings looming and partisan tensions at a fever pitch. Sources familiar with the matter describe the memo as an attempt to counter Kelly’s accusations of disloyalty and incompetence within Trump‘s orbit, but critics are labeling it a blatant effort to silence dissent ahead of Senate scrutiny.
Defense Nominee’s Memo Targets Kelly’s Verbal Barrage
The memo, dispatched last week by Trump‘s controversial defense secretary nominee Pete Hegseth, explicitly calls on John Phelan to dissect and discredit Kelly’s public statements. Kelly, a retired four-star Marine general who served as Trump‘s chief of staff from 2017 to 2019, unleashed a torrent of criticism in recent interviews, branding Trump as a man unfit for office and accusing his allies of endangering national security.
“General Kelly’s comments represent a dangerous distortion of facts,” the memo reportedly states, according to insiders who spoke on condition of anonymity. It instructs Phelan, a hedge fund titan and longtime Trump supporter, to compile a dossier highlighting inconsistencies in Kelly’s narrative. Phelan’s involvement raises eyebrows, given his history of multimillion-dollar donations to Trump‘s campaigns and his advisory role in transition team strategy sessions.
Hegseth, a Fox News host and Army veteran whose nomination has already drawn fire for his lack of high-level Pentagon experience, framed the review as essential for “safeguarding the integrity of our military leadership.” Yet, the timing—mere weeks before his confirmation vote—has fueled speculation that it’s a preemptive strike against mounting opposition.
- Key points from the memo: Fact-check Kelly’s claims on Trump‘s handling of troop deployments, assess loyalty among retired generals, and prepare counter-narratives for media amplification.
- Phelan’s response: A terse acknowledgment, promising a report within days, per sources.
- Distribution: Circulated to a select group of Trump allies, including incoming White House staff.
This isn’t Hegseth’s first brush with controversy. His past comments questioning women in combat roles and his defense of January 6 rioters have already mobilized veterans’ groups against him. Now, the memo adds fuel, portraying a nominee more focused on personal vendettas than defense policy.
John Phelan’s Shadowy Influence in Trump’s Political Machine
John Phelan, the New York-based billionaire behind Phelan Capital Management, isn’t just any donor—he’s a linchpin in Donald Trump‘s financial and strategic ecosystem. With contributions exceeding $10 million across Trump‘s 2016, 2020, and 2024 bids, Phelan has earned a seat at the table, advising on everything from tariff policies to cabinet vetting.
Born into a family of Wall Street power players, Phelan cut his teeth at Bear Stearns before launching his own firm, amassing a fortune estimated at $1.2 billion. His political awakening came during Trump‘s first term, when he publicly praised the president’s disruption of “entrenched elites.” By 2024, Phelan was chairing super PACs that poured $50 million into battleground states, helping secure Trump‘s narrow victories in Pennsylvania and Wisconsin.
Receiving the memo from the defense secretary nominee underscores Phelan’s elevated status. “He’s the guy who makes problems disappear,” one GOP strategist quipped. Phelan’s past interventions include orchestrating loyalty pledges from skeptical donors and quietly funding opposition research on rivals like Ron DeSantis.
But Democrats aren’t buying the optics. Rep. Adam Smith (D-WA), ranking member of the House Armed Services Committee, blasted the arrangement: “Turning to a hedge fund mogul to police a war hero’s words? This is Trump Politics at its most corrupt.” Smith’s office released financial disclosures showing Phelan’s firm profited handsomely from defense contractor stocks during Trump‘s tenure, netting over $200 million in gains.
- Phelan’s 2024 donations: $15M to MAGA Inc., $8M to state-level races.
- Transition role: Co-chair of economic advisory group.
- Defense ties: Investments in Lockheed Martin and Raytheon totaling $300M.
As The Guardian first reported, Phelan’s dual role as financier and fixer blurs ethical lines, especially when sends like this memo bypass official channels.
House Democrats Wave Video Proof of FBI’s Investigation Push
House Democrats, led by figures like Reps. Jamie Raskin and Hakeem Jeffries, dropped a bombshell this week: grainy video footage from a closed-door briefing confirming the FBI’s interest in probing the memo‘s origins. The clip, captured during a House Oversight Committee session, shows an FBI liaison nodding affirmatively when asked about “irregular communications involving Trump transition officials and private donors.”
“This isn’t speculation—it’s on tape,” Raskin declared in a fiery floor speech. “The FBI is seeking to investigate whether this memo constitutes witness tampering or undue influence on a public servant like General Kelly.” The video, circulating widely on social media, has racked up 2.5 million views, amplifying calls for subpoenas.
FBI spokespeople offered no comment, citing ongoing reviews, but legal experts note that federal statutes on obstruction (18 U.S.C. § 1512) could apply if the memo aimed to intimidate Kelly ahead of potential testimony. Kelly himself, speaking to CNN, dismissed the effort: “I’ve said my piece. They can review it all they want—truth doesn’t change.”
Democrats’ strategy is multifaceted: They’ve requested Kelly’s appearance before the House, demanded Hegseth’s financial records, and looped in the Senate Judiciary Committee. Polling from Quinnipiac shows 58% of independents view the episode negatively for Trump, potentially jeopardizing Hegseth’s 51-vote confirmation threshold.
Historical parallels abound—from Nixon’s enemies list to Trump‘s own “lock her up” chants—highlighting how personal attacks often backfire in confirmation wars. One veteran Hill staffer predicted: “This memo could cost two or three Republican senators’ votes.”
Kelly’s Warnings Resurface Amid Memo Fallout
John Kelly’s critiques, first aired in Bob Woodward’s 2024 book “War,” paint a damning portrait of Trump‘s chaos. He alleged Trump praised Hitler, floated nuclear options against allies, and sidelined generals like Mark Milley for disloyalty. In a fresh Atlantic essay, Kelly doubled down: “Hegseth lacks the gravitas for Defense. His TV rants aren’t strategy.”
These barbs hit hard in military circles. A Military Times survey found 62% of active-duty personnel oppose Hegseth, citing his unorthodox views on alliances and diversity. Veterans’ organizations, including the VFW, have flooded Senate offices with 15,000 letters urging rejection.
The memo‘s pushback attempts to reframe Kelly as embittered, pointing to his post-Chief tenure book deals and MSNBC appearances. Yet, Kelly’s service record—leading Marines in Iraq, FEMA during Katrina—lends unassailable credibility. “Generals don’t lie about threats to democracy,” Sen. Mark Warner (D-VA) tweeted.
Broader context: Trump‘s picks, from RFK Jr. to Tulsi Gabbard, test Senate GOP unity. Hegseth’s hearing, slated for January 15, now looms as a proxy battle over loyalty versus competence.
In the coming weeks, expect Phelan’s report to drop, potentially with cherry-picked quotes and donor-backed ads. House Democrats vow to escalate, possibly filing impeachment referrals if FBI findings emerge. For Trump‘s defense secretary hopes, the clock is ticking—will the memo fortify or fracture his defenses?
Looking ahead, this saga could redefine confirmation norms, forcing greater scrutiny on donor influence in Politics. With midterms on the horizon, both parties are weaponizing the narrative: Republicans cry “deep state witch hunt,” while Democrats position as guardians of institutional integrity. Senate Majority Leader John Thune faces a high-wire act, balancing Trump loyalty with national security imperatives. If Hegseth falters, alternatives like Elbridge Colby await, but the damage to Trump‘s momentum might prove lasting. Stakeholders from Capitol Hill to the Pentagon are watching closely, as one memo threatens to unravel a presidency before it reignites.
