According to Rear Adm. Jack Scorby, the commander of the Navy's mid-Atlantic region, a team member's parachute failed to open properly, and he landed in the water near Liberty Park.
The Coast Guard and the Jersey City Fire Department marine unit immediately responded and got the SEAL out of the water, and he was taken to the Jersey Medical Center, where he was pronounced dead at 1:10 p.m.
"Our hearts and prayers go out to his family, and I ask for all of your prayers for the Navy SEAL community, who lost a true patriot today," Scorby said.
The cause of the accident is under investigation, and the SEAL's name was being withheld until the next of kin are notified, the Navy said.
Video taken by ABC station WABC-TV showed part of the parachute coming down after the parachutist separated from his chute and landed in the water.