The Trump administration is launching a six-month pilot program in Texas aimed at identifying cybersecurity vulnerabilities at water utilities and helping systems address them with private-sector cybersecurity and artificial intelligence tools.

Dubbed Project Watershed 250, the initiative brings together the Office of the National Cyber Director (ONCD), Texas Cyber Command, the office of Gov. Greg Abbott and private-sector companies. The Environmental Protection Agency (EPA) and Cybersecurity and Infrastructure Security Agency (CISA) will participate as federal partners.

"The National Association of Water Companies (NAWC) commends the White House, Texas state leadership, and federal partner agencies for launching Project Watershed 250 to strengthen the cybersecurity posture of America's water systems," said NAWC President and CEO Robert F. Powelson in a statement.

Microsoft, Reflection AI, Palo Alto Networks and industrial cybersecurity firm Dragos are among the companies participating. According to Abbott's office, participating utilities will receive the assistance at no cost.

The pilot is intended to identify vulnerabilities and provide utilities with tools to address them, with the administration planning to expand the model nationally following the six-month test.

“Regulated, private water operators have invested heavily in robust security architectures, continuous monitoring, and advanced threat-mitigation protocols," Powelson said. "We strongly welcome initiatives like Project Watershed 250 that bring high-level technical expertise, private-sector innovation, and artificial intelligence tools directly to local providers."

The initiative comes as water systems face heightened scrutiny over cybersecurity following a series of recent attacks on community water systems in Minnesota and other states. Officials have said the affected systems remained operational and there were no known public health impacts. The FBI and CISA have assisted with the response.

Water utilities remain a particular cybersecurity concern because many smaller systems have limited personnel, funding and technical expertise. Officials have also warned that poorly secured remote-access systems can provide attackers with pathways into operational technology used to control treatment and distribution equipment.

Texas Cyber Command, headquartered in San Antonio, was established in 2025 with $135 million in state funding to protect state and local government systems and coordinate responses to cyberattacks.