Defense Secretary Pete Hegseth has started a process that could lower Sen. Mark Kelly’s retired Navy rank and reduce his military pension. Experts in military law see this as an unusual attempt to punish a retired officer for speech and behavior after service, rather than for actions taken while on active duty.
Hegseth’s move follows a heated public clash with Kelly, a Democratic senator from Arizona and retired Navy captain. This conflict arose when Kelly joined five other Democratic lawmakers in a November video that reminded service members they must refuse illegal orders. Hegseth argued that the message harmed discipline and promoted disobedience. In contrast, Kelly and other Democrats claimed the video echoed long-standing legal principles regarding unlawful orders.
Instead of pursuing a court-martial, which Hegseth previously suggested, he opted for an administrative route. This path sets in motion a review of Kelly’s retired grade. The Navy Secretary, John Phelan, must give Hegseth a recommendation within 45 days on whether a reduction is justified. After receiving this, Hegseth will decide whether to lower Kelly’s grade and corresponding pay.
Hegseth sent a letter of censure to Kelly, claiming the senator’s actions harmed good order and discipline. This censure letter starts the process for reviewing retirement grade and creates a formal record that can support the request for a grade reduction.
Reuters reported that the Pentagon began the retirement grade determination under 10 U.S.C. § 1370(f), which governs certain grade determinations for retired officers and can impact retirement pay based on rank. This approach prevents recalling Kelly to active duty for a trial, but it raises concerns about using the statute to penalize retirees for speech and conduct occurring years after retirement.
When I was commanding the space shuttle, I told my crew members it was their job to disagree with me and tell me if they thought I was wrong. Trump and Hegseth come after anyone who says anything they don’t like. That’s bad for all of us. pic.twitter.com/JZLAVA2KoJ
— Senator Mark Kelly (@SenMarkKelly) January 9, 2026
“The bottom line is, this is not lawful,” said retired Air Force Lt. Col. Rachel VanLandingham, a former judge advocate, referring to the use of military code to reduce Kelly’s rank in this case. “It’s just never been done,” she added, based on the information provided.
Reuters reported that Kelly called the move politically motivated and vowed to fight it. The Pentagon has stated that Kelly will have the chance to respond before the Navy secretary sends a recommendation to Hegseth. Additionally, Reuters reported that the department plans to include the censure letter in Kelly’s military record and has given him 30 days to submit a response.
This dispute shows a wider conflict between the Trump administration and Democratic lawmakers over military authority and civilian oversight. The November video at the center of the case surfaced amid controversy regarding administration policy and military operations. It framed the refusal of unlawful orders as a duty for service members, a concept rooted in military law and training.
The administrative effort also has political implications since it targets a sitting senator. Critics warn that it could discourage speech by retired officers and veterans in public roles, while supporters argue that retirees receiving military pay are still accountable under military rules.
No final decision has been announced yet; the recommendation from the Navy secretary to Hegseth, along with any decision on Kelly’s retired grade, will come after reviewing Kelly’s response.
