The Trump administration is rolling out “Project Watershed 250” on Monday, a six-month pilot program deploying American artificial intelligence and cybersecurity tools to defend Texas water utilities against cyberattacks, with plans to expand the model nationwide if it succeeds.
The initiative pairs federal agencies, the state of Texas and private cybersecurity firms to hunt for weaknesses in water system networks before hostile actors can exploit them. It will use “red-teaming” — simulated attacks designed to expose vulnerabilities — then apply commercial cyber and AI tools to patch what’s found, according to a White House official.
National Cyber Director Sean Cairncross framed the program as part of a broader push to secure critical infrastructure. “Project Watershed 250 is another example of President Trump putting American families and communities first. President Trump is relentless in his work to secure our critical infrastructure against our most determined adversaries,” Cairncross said. He added that the effort brings “exquisite” AI security tools “to local communities and utilities in Texas and ultimately, across the nation.”
Texas Gov. Greg Abbott backed the program, saying it costs local utilities nothing. “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 response to Minnesota, White House says
The rollout comes weeks after investigators said Iranian hackers were likely behind a coordinated cyberattack that hit more than 30 Minnesota water systems, exposing how exposed smaller utilities are across the country. A White House official said Watershed 250 was not launched because of that incident and has been in development since last year, but acknowledged the attacks reinforced the case for it. “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 the threat to U.S. water infrastructure is real and ongoing, particularly for small utilities that lack the resources to defend themselves. He said the program is meant to get technology, training and support to those systems before, not after, an attack.
Federal agencies and tech firms on board
The Environmental Protection Agency and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency will serve as federal partners. Texas Cyber Command will coordinate with local governments and private companies including Microsoft, Reflection AI, Palo Alto Networks and Dragos Inc.
Microsoft US Public Sector president Chris Barry said the company is “proud to support the Project Watershed 250 effort” and aims to help “develop scalable approaches that can enhance the security of water systems nationwide.” Reflection AI’s Becky Sosnov said the program shows how “open-weight AI models, built in the U.S. and running on a utility’s own systems, can help keep communities safe.”
The pilot builds on Trump’s June executive order on Promoting Advanced Artificial Intelligence Innovation and Security and the administration’s Cyber Strategy for America, released in March. It also arrives as the administration pushes to expand U.S. data center capacity for the AI boom, a buildout that depends heavily on reliable water and power supplies.
