‘Watershed 250’ test program in Texas looks to private sector for water cybersecurity help

The six-month program will be overseen by the Office of the National Cyber Director and Texas Cyber Command to “find out what works.”

The Trump administration rolled out a six-month test program in Texas on Monday that will draw on volunteer expertise and technology from cyber and artificial intelligence companies to protect the water sector.

“Project Watershed 250” is the first of the state-based, industry-centric pilot projects to cross the finish line that the Office of the National Cyber Director has previewed since the publication of its national cybersecurity strategy earlier this year. Water systems have long been viewed as among the most vulnerable and neediest critical infrastructure sectors, and in recent months the sector has been the victim of a spree of attacks.

“Project Watershed 250 is a commitment from the states, industry and federal government that we will continue to prioritize our nation’s safety and deliver on America-first policies for the American people,” National Cyber Director Sean Cairncross said at a rollout event in San Antonio Monday.

“U.S. companies are providing world-class cyber capabilities, red teaming that tests utilities’ current defenses, system hardening using the latest private sector cyber tools and AI tooling that helps utilities’ frontier cyber defenders to protect Texas water systems and scale proven solutions across the country,” he said. “This six-month pilot program is designed to make our water and wastewater critical infrastructure more resilient and resistant to cyber attacks by proactively finding and fixing system weaknesses.”

The pilot program, featuring collaboration between federal and state governments, stands in contrast to how the Biden administration tried to tackle the issue, with audit requirements that some GOP states challenged in court, forcing Biden’s Environmental Protection Agency to withdraw its rule.

“For too long, at least on the federal level, the government has admired the problem of cybersecurity in water systems,” Cairncross said. “We are going to find out what works. We’re going to target that, and we are going to scale off of this and learn lessons.”

A dozen companies — Parsons, Microsoft, Fortinet, Google Cloud, Palo Alto Networks, Amazon Web Services, Reflection AI, Cloudflare, Zscaler, Forescout, Abnormal AI and Dragos — appeared at the rollout Monday to praise the initiative and tout their contributions to it.

Not everyone praised the initiative elsewhere, however. One cyber professional who works on water security issues, speaking on condition of anonymity, said the program was “all smoke” and that “there’s no real money behind it.”

“The White House did what it always does — reached out to industry with their hands out asking for industry to pay for things the government should be doing, at least in part,” the person said.

Texas Gov. Greg Abbott said the program would be overseen by Cairncross’s office and Texas Cyber Command, which was established just last year. Abbott cited the need for the program by mentioning “an Iranian-backed cyberattack” on 30 water systems across 12 states and a 2024 attack on the water system in Muleshoe, Texas, suspected to be the work of Russian hackers.

“The need for cyber resilience is overwhelming,” Abbott said. “Many rural providers simply don’t have the resources they need to be able to protect themselves.”

Watershed 250 isn’t the only federal effort to bolster water cybersecurity, with lawmakers introducing legislation in the aftermath of the recent attacks. Past legislation that Congress has enacted also sought to tackle the problem.

Updated 8/31/26: with comment from cyber professional.

Government

• FBI officials say AI is bolstering adversaries, emphasizing need to focus on cyber basics, patching

• Feds accuse China of ‘systematic’ distillation of U.S. AI models

• CIA’s Michael Ellis says cyber intelligence is changing how the agency operates

• The G7 tells industry to hurry up and prep for post-quantum encryption

Technology

• European parliament members call for slowdown of Serbia’s EU entry over spyware use

• FCC proposes public scorecard to rate telecoms on anti-robocall efforts

• Pegasus, NoviSpy variant spyware found on devices of Serbian activists

• Wyden seeks upgraded NSA security guidance on commercial VPN use

Threats

• Microsoft discloses two actively exploited zero-days among 974 vulnerabilities

• Russian national extradited to US for alleged involvement in bank-account takeover scheme

• Attackers exploit zero-days in consistently besieged SonicWall product

• Jail time for Maine child in 764 marks turning point in federal law enforcement

Policy

• Whistleblower says USPS deploying new, ‘untested’ IT systems governing mail-in ballots

• Former sexual abuse victims say Grok used their images, videos to train deepfake capabilities

• Cyber threats nudge Trump to sign executive order on foreign equipment in U.S. energy infrastructure

• Election official says Tina Peters would be consultant, won’t have access to election systems