EXCLUSIVE: Secretary of War Pete Hegseth said Sen. Mark Kelly, D-Ariz., will receive a formal censure letter and that he has directed Secretary of the Navy John Phelan to review the retired Navy captain's retirement rank and pay and provide a recommendation in 45 days, sharply escalating an investigation alleging he made "seditious statements" that undermined military operations.
"Six weeks ago, Senator Mark Kelly - and five other members of Congress - released a reckless and seditious video that was clearly intended to undermine good order and military discipline," Hegseth said in a statement to Fox News Digital. "As a retired Navy Captain who is still receiving a military pension, Captain Kelly knows he is still accountable to military justice. And the Department of War - and the American people - expect justice."
The review could result in a downgrade of Kelly's rank at which he officially retired. As a result, his retirement pay, which is tied to rank, may also be reduced.
Kelly fired back by calling the move "outrageous" and "un-American."
"If Pete Hegseth, the most unqualified Secretary of Defense in our country's history, thinks he can intimidate me with a censure or threats to demote me or prosecute me, he still doesn't get it," Kelly said. "I will fight this with everything I've got - not for myself, but to send a message back that Pete Hegseth and Donald Trump don't get to decide what Americans in this country get to say about their government."
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A censure letter will also be issued outlining the "totality of Captain Kelly's reckless misconduct," Hegseth said.
Such a letter typically calls out figures for wrongdoing and can be used to justify reductions in rank, pay or benefits. It also serves as an official warning that future misconduct could result in harsher consequences.
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"This Censure is a necessary process step, and will be placed in Captain Kelly's official and permanent military personnel file," Hegseth said.
The department added that Kelly's status as a sitting U.S. senator "does not exempt him from accountability, and further violations could result in further action."
Kelly was notified of the basis for the actions and has 30 days to submit a response, according to Hegseth.
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A current Army officer and national security official praised the administration's decision in a statement to Fox News Digital on Monday.
"It is encouraging to see an administration hold former military officers accountable for their actions," the official said. "We never stop serving, and it is a reminder that one cannot use their political position, absent their military oath, to encourage subversion. Oaths matter, and they do not end when you exit the ranks. CAPT Kelly crossed a line he would have prosecuted subordinates for if he was still in uniform."
The department added that such actions against Kelly are based on his public statements from June through December 2025, in which he "characterized lawful military operations as illegal and encouraged members of the Armed Forces to refuse lawful orders."
This comes after a group of Democratic lawmakers with military and intelligence backgrounds - Kelly, Sen. Elissa Slotkin of Michigan, and Reps. Chris Deluzio and Chrissy Houlahan of Pennsylvania, Maggie Goodlander of New Hampshire, and Jason Crow of Colorado - released a video directed at service members and intelligence officers stating: "Our laws are clear. You can refuse illegal orders."
All the lawmakers in the video highlighted their former service in the military and intelligence community.
Members in the video had worked to limit Trump's ability to deploy National Guard members domestically or launch military action against suspected narco-terrorists without congressional approval. However, none of that context appears in the video, titled "Don't Give Up the Ship." Instead, the video framed the appeal as a warning to military members to "stand up for our laws" and "refuse unlawful orders."
Fox News Digital's Rachel Wolf and Madison Colombo contributed to this report.
