The Trump administration is launching a six-month pilot program called “Project Watershed 250” on Monday, deploying artificial intelligence and cybersecurity tools to protect Texas water systems from cyberattacks, with plans to expand the model nationwide if it succeeds.
The program brings together federal agencies, the state of Texas and private cybersecurity companies to test water utility networks for vulnerabilities that hackers could exploit, then strengthen those systems before an attack occurs. A White House official described the approach to Fox News Digital as using “red-teaming” — simulated attacks designed to find weaknesses — followed by remediation using private-sector cyber and AI tools.
National Cyber Director Sean Cairncross said the effort reflects a broader administration priority on infrastructure security. “President Trump has cemented America’s leadership in AI security and innovation and is now bringing those exquisite tools to local communities and utilities in Texas and ultimately, across the nation through the launch of Project Watershed 250 – a scalable cyber water pilot program,” Cairncross said.
Texas Gov. Greg Abbott framed the program as a direct benefit to residents. “There is nothing more important to Texans than clean, reliable drinking water. Project Watershed 250 puts federal, state, and private-sector cyber defenses behind our utilities at no cost. The White House, the Texas Cyber Command, and industry now work from the same playbook,” Abbott said.
Not a Direct Response to Minnesota Attacks, Official Says
The launch follows reports that investigators believe Iranian hackers were likely behind a cyberattack that hit more than 30 Minnesota water systems. A White House official said Project Watershed 250 was not created in response to those incidents, but acknowledged they highlighted existing weaknesses in local water infrastructure.
“However, these recent attacks have reiterated the need for this modernization and focus on water systems,” the official said. “Critical Infrastructure protection has long been a priority for ONCD and President Trump and this effort has been in the works since last year.”
Dragos CEO Robert Lee said small water utilities, in particular, face active and documented cyber threats but often lack strong defenses. He said Watershed 250 is designed to deliver technology, training and support to those vulnerable systems ahead of any attack.
Federal and Private Partners
The Environmental Protection Agency and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency will serve as federal partners in the program. Texas Cyber Command will coordinate with local governments and technology companies including Microsoft, Reflection AI, Palo Alto Networks and Dragos Inc.
Microsoft US Public Sector president Chris Barry said the company was proud to support the effort. “By bringing together Microsoft’s cybersecurity expertise, threat intelligence, and AI-powered security capabilities, we aim to help water utilities strengthen their resilience against evolving cyber threats and develop scalable approaches that can enhance the security of water systems nationwide,” Barry said.
Reflection AI head of corporate affairs Becky Sosnov emphasized the use of domestically built technology. “Few things matter more than the safety of the water Americans drink, and this is a powerful example of how open-weight AI models, built in the U.S. and running on a utility’s own systems, can help keep communities safe,” Sosnov said.
The pilot builds on President Trump’s June executive order on Promoting Advanced Artificial Intelligence Innovation and Security and his Cyber Strategy for America released in March. It also comes as the administration pushes to expand U.S. data center capacity to support the growing AI industry, a buildout that has drawn added attention to the security of the water and power systems those facilities depend on.
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