Project Watershed 250

The White House and Texas are debuting a 6-month pilot program to support the cyber defenses of state water facilities with the help of tech companies. 

Since the initial news of Minnesotan water facilities systems’ being hacked through vulnerable Programmable Logic Controllers (potentially by threat actors linked to Iran), there has been an increased focus on protecting that part of America’s critical infrastructure. Following that initial discovery in late July, even more water facilities across the country reported their own intrusions. At least 11 states - besides Minnesota - have experienced attacks through the exploits in the PLCs. Georgia, Michigan, New Jersey, and South Dakota were also targeted, with Georgian officials briefly telling residents to boil water until they confirmed the water was safe. In New Jersey, there were two incidents at utility centers due to internet-exposed devices. While none of the attacks have resulted in unsafe drinking water, the hacks have still stirred up concern about critical infrastructure in what some believe to be an attempt to intimidate. The managing director and head of cyber intelligence at Accenture, Ryan Whelan postured: “Some of what I think the adversaries are trying to achieve here is just a fear factor”.

This fear has propelled some into political action. On August 7th, 2026, Senators Adam Schiff (CA) and Amy Klobuchar (MN) introduced legislation, ‘Water Cyber Shield Act of 2026’ in response to the incidents. In the press release, Senator Klobuchar explained the need for the bill: “The recent cyberattacks on Minnesota have highlighted the urgent need to improve the security of our water systems and critical infrastructure. Our legislation will direct the EPA to assess water infrastructure cybersecurity and identify vulnerabilities, and help municipal water systems defend against cyber threats. Protecting our critical infrastructure and the safety of Minnesotans is a top priority.”

The Water Cyber Shield Act of 2026 is aimed toward the Environmental Protection Agency. The press release shares the goals of the bill - allowing the EPA to conduct cybersecurity assessments with a provision of $300 million annually specifically for cybersecurity improvements, to develop cybersecurity alongside the Cybersecurity and Infrastructure Security Agency (CISA), the National Institute of Standards and Technology (NIST), states, and water sector stakeholders, to include state and local water and wastewater systems in more cyber incident reporting policies with protection of sensitive information, and to clarify and coordinate enforcement responsibility with state leadership. This list of goals may prove to be helpful for the future of water facilities in the US, but awaits being reviewed and passed. In the meantime, a new state and federal initiative to support cybersecurity for water utility providers is in the works.

On August 31st, 2026, the White House National Cyber Director Sean Cairncross and the governor of Texas, Greg Abbott, announced the launch of Project Watershed 250. The project details, exclusively shared with Fox News Digital, are described as “a six-month Texas pilot aimed at finding vulnerabilities in water systems before adversaries can exploit them - while testing whether the model can be expanded across the country.” Texas water facilities will test their defenses using tools powered by artificial intelligence (AI). The pilot will be supported by the EPA, CISA, and tech companies Dragos Inc, Microsoft, Palo Alto Networks and Reflection AI.

The press release from Governor Abbott’s office clarifies that this support will help relieve the financial burden of cybersecurity for smaller, rural water utilities: “Texas is the state leader in the United States in cyber warfare. Project Watershed 250 will connect water utility providers with cyber defense resources at no cost by leveraging the experience of private sector businesses with the expertise of the Texas Cyber Command. Our communities and water systems will be better secured from the onslaught of cyber-attacks.” Texas’ position as the third state with the most data breaches in the US was part of the reason the Texas Cyber Command was created, and the recent events have already put the state on high alert. Governor Abott praised the project for addressing these fears: “There is nothing more important to Texans than clean, reliable drinking water…The White House, the Texas Cyber Command, and industry now work from the same playbook”.

Unlike the Water Cyber Shield Act, however, this program was not created as a response to the coordinated cyberattacks on water systems in Minnesota and other states, according to a White House official who spoke with Fox News. Instead, the project is a development in the White House’s push for global leadership in AI and was actually “in the works since last year.” AI is a key aspect of the cyber strategy Trump released this year, with the fifth pillar - ‘Sustain Superiority in Critical and Emerging Technologies’. Data centers for AI require water and power to run, so the program is intended to be a next step following the executive order “Promoting Advanced Artificial Intelligence Innovation and Security”. Still, the White House official maintained that current events supported “these recent attacks have reiterated the need for modernization and focus on water systems”.

In any case, government officials and industry leaders are excited about Project Watershed 250. Sean Cairncross, the National Cyber Director said “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.” Chris Barry, president of Microsoft's US Public Sector also commented, saying the company “applauds the administration’s leadership in strengthening the cybersecurity of America’s water infrastructure and is proud to support the Project Watershed 250 effort in partnership with the Office of the National Cyber Director, the State of Texas, and Texas Cyber Command.” Between this initiative and the Water Cyber Shield Act, water facilities in the US may expect a cybersecurity update in the near future.