A House Democrat tapped to lead his party’s efforts on artificial intelligence has introduced legislation that would establish a test program within the Cybersecurity and Infrastructure Security Agency to give critical infrastructure operators free access to frontier AI models to protect their systems.

Rep. Josh Gottheimer, D-N.J., introduced the AI Cyber Defense Act Monday, inspired by the series of cyberattacks on water facilities in recent months. “If we don’t get ahead of it, it can mean a disaster for our families,” he said at a news conference when he first announced the measure and others tackling water cybersecurity.

Gottheimer holds a couple of posts relevant to the legislation: He’s one of three co-chairs of the House Democratic Commission on Artificial Intelligence, and the top Democrat on the House Intelligence Committee’s cyber subcommittee. He also has bipartisan support for the bill, with co-sponsors Reps. Don Bacon, R-Neb., Zach Nunn, R-Iowa, Hillary Scholten, D-Mich., and Greg Landsman, D-Ohio.

The bill directs the Department of Homeland Security, through CISA, to create a program “through which owners and operators of critical infrastructure that participate in the Program are able to securely utilize artificial intelligence procured through the Secretary and technical assistance provided by the Secretary to protect against, detect, test for, and remediate vulnerabilities in the cybersecurity of such critical infrastructure.”

AI-tinged, water-focused cybersecurity pilot programs are all the rage lately. The introduction of Gottheimer’s legislation is adjacent to, but different from, a test program that the Office of the National Cyber Director recently announced in Texas.

One criticism of that program is that private sector companies offered their cyber and AI services through it on a purely voluntary basis, with no significant budget to bolster the pilot. Gottheimer’s bill would authorize $100 million for the pilot program from 2027 to 2031 before it ends, although appropriators would have to follow through on providing the actual dollars. The Trump administration has significantly cut CISA funding in its second term.

“Right now federal funding for critical infrastructure has an uncertain future and many of our local communities just don’t have the resources they need to pay for AI tokens to do the patching they need,” Gottheimer said when he introduced the bill. “It’s expensive to bring the AI in to analyze your system and find those vulnerabilities.”

Critical infrastructure owners and operators could apply for the pilot program, which the bill directs to give priority to nonprofit, publicly owned, rural and small-sized organizations.

“The same technology that can help a small town’s IT guy find and patch a gap in cybersecurity can also help a hostile government find a hundred more it hasn’t even discovered yet,” Gottheimer said when he announced the bill. “AI didn’t create this threat, but it’s accelerated it, and our defenses have to keep up.”

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A group of leading House Democrats introduced legislation Monday requiring the Cybersecurity and Infrastructure Security Agency to conduct an assessment of its workforce to determine whether it’s up to the task after the exit of around 1,000 employees during President Donald Trump’s second term.

The concept of a force structure assessment is more common in military branches, including one that Congress previously ordered for Cyber Command. The CISA Force Structure Assessment Act would order the agency to carry out a review of whether the agency still has the necessary personnel, training and certifications after budget cuts and other Trump-era departures.

“America’s cyber defenses are only as strong as the people behind them,” Rep. James Walkinshaw, the Virginia Democrat serving as lead sponsor of the bill, said in a news release. “As cyber threats grow more sophisticated and technologies like artificial intelligence and quantum computing reshape the threat landscape, Congress needs a clear accounting of whether CISA has the workforce, skills, and resources required to keep Americans safe and enable mission delivery. This legislation will identify critical gaps and give Congress concrete information to address them.”

Also sponsoring the bill are the top Democrat on the House Homeland Security Committee, Bennie Thompson of Mississippi, and the top Democrat on its cybersecurity subcommittee, Delia Ramirez, D-Ill.

Additional elements of the force structure assessmewould include a review of the security of federal IT systems and support for state and local governments; the risks posed by AI, quantum computing and other cutting edge technologies; CISA’s threat-hunting and incident response capabilities; support for critical infrastructure and operating technology, including CISA’s role as a sector risk management agency for a number of industry sectors; the operation of the Joint Cyber Defense Collaborative; and international cooperation.

Some lawmakers and other observers have worried those areas have been greatly impacted by staffing cuts, ultimately hurting CISA’s ability to carry out its core functions.

Ramirez dinged GOP lawmakers for “a lack of interest in safeguarding our nation’s cybersecurity and our residents’ civil rights and privacy” in going along with the CISA cuts and other developments at the Department of Homeland Security.

Lawmakers on both sides of the aisle have voiced concern about the scope of cuts at CISA, but Republicans have approved some of them while pushing back on others. CISA itself is currently seeking to hire hundreds of new personnel, even as its latest budget blueprint calls for yet more funding reductions.

“With Iran targeting our critical infrastructure and frontier AI models creating new cyber risks, we must ensure we have a cybersecurity workforce to counter these growing threats,” Thompson said. “After Trump has spent the past two years targeting and slashing CISA’s workforce, we need the agency to assess if it has [the] right personnel in place to fulfill its mission.”

National Cyber Director Sean Cairncross has discussed White House plans to develop a cybersecurity academy meant to consolidate and enhance existing federal cyber training and education programs, with the aim of addressing cyber workforce shortages. His office has reportedly drafted an executive order that would establish that academy.

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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.

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The Trump administration’s haphazard and opaque interventions into artificial intelligence security matters could catapult Chinese alternatives into broader acceptance, posing new security risks altogether, a group of Democratic senators wrote to top administration officials Monday.

The five senators said that the administration’s handling has alternated between too passive, such as when OpenAI models escaped testing in the Hugging Face hack last month, and overstepping, such as when the Commerce Department suspended access for any foreign national to Anthropic’s Fable 5 and Mythos 5 in June.

“The Administration’s ad hoc and unpredictable approach undermines U.S. competitiveness, heightening market incentives to adopt open weight models from vendors based in the People’s Republic of China (PRC),” wrote Sens. Kristen Gillibrand of New York, Adam Schiff of California, Mark Warner of Virginia, Chris Coons of Delaware and Mark Kelly of Arizona.

In the Hugging Face hack, the senators wrote that “the Federal Government cannot be passive as these capabilities emerge.”

In the case of the Fable 5 and Mythos 5 suspensions, the senators said that the administration “utilized an infrequently used authority to direct Anthropic to suspend all access to its Fable 5 and Mythos 5 models for foreign nationals (including foreign national employees inside the United States) citing an undisclosed national security concern later described as a narrow jailbreak finding.”

Because Anthropic couldn’t immediately assess users’ nationality, the firm had to disable both models for everyone. The administration and Anthropic negotiated for 18 days behind closed doors before reaching an agreement, the lawmakers complained.

“While the Administration may have been responding to real security concerns to protect the United States, even justifiable interventions can create broader harm if the standards and decision-making processes are opaque, ad hoc, or unpredictable,” they said in their letter to leaders in the White House, Office of the National Cyber Director and departments of State, Treasury and Commerce. “Moreover, when the Executive Branch exercises authority delegated from Congress, such as in the conduct of export control administration, it is essential that it keep Congress fully apprised of its actions and procedures.”

During the time Anthropic was under export controls, the stock price of “an entity-listed Chinese lab” nearly doubled, the senators said. And while Hugging Face was breached, the company “had to” rely on a Chinese open-weight model due to guardrails on U.S. frontier models.

“If American models are perceived as subject to sudden access disruptions based on a black-box U.S. Government process, or as unreliable because U.S. AI labs are overcorrecting in the face of this black-box process, companies and governments in the United States and abroad may hedge by adopting Chinese or other foreign models instead,” the senators contended. “That outcome would undermine U.S. technological leadership while increasing exposure to systems that may carry risks of PRC or otherwise directed censorship, espionage, IP theft, and other supply chain security risks.”

Their letter asked for answers to questions about the standards the administration uses to determine the national security risks a frontier model presents, what legal authorities it will use to invoke restrictions, which agencies are responsible for which decisions and more.

None of the offices or departments the letter was addressed to immediately responded to a request for comment.

The letter follows inquiries at the state level, where 15 attorneys general asked OpenAI for more information regarding the security incident at Hugging Face.

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Seven out of 10 federal cyber regulations requiring written reports to federal agencies are duplicated elsewhere, a report from a government watchdog found in a report to Congress Wednesday.

And so far, efforts to de-conflict haven’t had much success, the report from the Government Accountability Office concluded.

At the request of two top lawmakers, the GAO examined federal cyber regulations at 37 agencies. It counted 80 out of 117 rules that “either contain the same kind of reporting requirement applicable to a sector or the same reporting requirement as at least one other regulation.”

The desire to harmonize those conflicting rules gathered steam under the Biden administration, as it undertook a more aggressive push to regulate cybersecurity than prior administrations. It has continued into the second Trump administration.

The GAO scrutinized regulations that required the private sector to report cybersecurity incidents, plans and reviews to federal agencies, as part of a study sought by House Homeland Security Chairman Andrew Garbarino, R-N.Y., and the top Democrat on the Senate counterpart to Garbarino’s panel, Gary Peters, D-Mich.

In some cases, a single critical infrastructure sector could have duplication with several agencies. For example, the Cybersecurity and Infrastructure Security Agency has been working on a regulation stemming from the 2022 Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA), which would require critical infrastructure owners and operators to report when they are the victims of major attacks or make ransomware payments.

Elements of the financial services sector might fall under one of 15 preexisting cybersecurity reporting rules, depending on the agency that has oversight, but they may also be subject to the pending CIRCIA rules, GAO noted.

A 2024 national security memorandum tasked the Office of the National Cyber Director and the Department of Homeland Security to harmonize conflicting regulations, and both agencies made some progress on those goals.

But the executive branch paused some of those efforts after Trump issued an executive order in March of last year while the administration conducted a study of the 2024 memo, a study that was still underway as of last month, according to the GAO.

As such, on harmonization, “many past federal efforts have experienced delays and made limited progress,” the GAO concluded in its report Wednesday, its latest on the topic. 

Congress has also looked at ways to streamline cybersecurity regulations.

GAO’s study was focused only on federal rules. BreachRx, a cyber incident response firm, published its own report Wednesday looking at major cyber incidents and how overlapping regulatory reporting obligations came into play, folding in regulations from states and other sources.

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After a year and a half spent downplaying calls for AI safety regulations, the Trump administration has sharply reversed course, embracing a level of government scrutiny of frontier AI systems before public release–a far stricter stance than the Biden administration took.

An executive order designed to be friendly to the AI industry was meant to let the federal government briefly review some new models on a voluntary basis.

When the Trump administration, suddenly and without much warning, slapped export controls on Anthropic’s Fable 5 and Mythos 5 in response to private sector threat intelligence reporting, the U.S. AI industry officially entered its regulatory era.

But key questions and gaps remain. It’s not clear why the administration drew the line where it did, or whether they will move it again in the future.

While newer models like Mythos and OpenAI’s Daybreak do have stronger cybersecurity capabilities, the private sector reports the administration relied on describe capabilities already available in older commercial, open-source and Chinese models that nearly anyone can access.

CyberScoop spoke with current users of the latest frontier models, including OpenAI’s ChatGPT 5.5 and Fable 5, to learn more about what these models are currently capable of in offensive and defensive cybersecurity.

Cybersecurity experts and former government officials say the administration may be playing catch up on threats that have been building for years as it has more fully realized the national security implications of the technology.

Are the models breaking new ground or just breaking things? 

Users of Chat GPT 5.5, introduced this past April, and Fable 5 tell CyberScoop those models have been largely helpful to their work, even as they complained about high token usage and safety guardrails that hinder,  but don’t meaningfully prevent, defensive cyber tasks.

Eyal Webber Zvik, chief strategy officer at Cato Networks, a cloud and cybersecurity network provider in OpenAI’s Trusted Access in Cyber program, said they use GPT 5.5 and later OpenAI models to scan and triage internal codebases for vulnerabilities, test new safeguards and provide “highly autonomized service” to their customers.

Zvik wouldn’t disclose how many bugs 5.5 has found but said the company’s view is that it helps both find bugs that humans missed and rank which ones to patch based on factors like each bug’s exploitability.

“It is now a native part of our development environment and cycles, and we use those models to scale our entire codebase and make sure what we release into the service that our customers use to run their networks and network security has the least likelihood of having any vulnerabilities that can be exploited,” said Zvik.

John Hopper, vice president of engineering at SpecterOps, an identity security company, said newer models like GPT 5.5 are sharper and more persistent in pursuing their tasks.

“That can be a good or bad thing,” he noted.

One metric that SpecterOps tracks is how long it can keep a particular agent working before it moves off task or fails. That metric “matters a lot” because the longer an agent works without human help , the more agents a single operator can run at once.

Hopper said this provides defenders with immense value, and pushed back on the idea that the offensive capabilities the models offer are automatically more beneficial to malicious hackers. There is “a modicum of grounding that the industry needs when we talk about these models.”

“Yes, AI frontier tools will lower the barrier of entry, but these problems have always existed,” he said. “I don’t actually believe that AI is going to remove the needle in the haystack problem, but by howdy, using my two hands to find that damn needle, compared to using a backhoe, I can tell you which one I’d rather be driving.”

Eran Kinsbruner, vice president of product marketing at software security firm Checkmarx, told CyberScoop that later models like OpenAI’s Codex Security and GPT 5.5 are noticeably easier to set up and run with local systems, even for less technical users. That alone gives them an edge over many cybersecurity tools where interoperability is a constant concern.

However, GPT 5.5 burns through tokens at a much faster rate. He recalled one instance of using it to scan a medium-sized repository in three different programming languages.

“After 26 minutes I almost ran out of tokens, and it didn’t provide anything, just created a threat model for me and told me you want to buy more tokens?” he said.

In other instances, some of the scan results he received were not comprehensive.

Further, he expressed frustration with some of the guardrails designed to prevent risk – like only allowing users to scan local files but not code repositories like GitHub – “makes not too much sense” given how often developers must work with remote code.

Those kinds of guardrails – which can prevent models or developers from injecting malicious code or prompting into their models – sit at the heart of the debate in Washington D.C. and around the world. Some users feel differently about their utility.

Kinsbruner said that doesn’t make sense for organizations like his, which work with thousands of different enterprise organizations with  thousands of different code repositories spread across the internet.

“I cannot imagine how large-scale developers could just jump into this solution and make it an enterprise-grade, enterprise-level, de facto cybersecurity solution” out of it, said Kinsbruner.

OpenAI did not respond to a request from CyberScoop for an interview on GPT 5.5. The company has since released another model, GPT 5.6, that they said is more efficient at token use.

The White House’s crash course in AI cyber risk 

 The White House keeps changing its line on whether and how the U.S. government should limit the release of commercial frontier models. The shift comes from lessons learned since coming into office in Jan. 2025. Trump threw out Biden-era regulations meant to steer the industry toward safer models. Top officials like Vice President JD Vance argued against restricting industry progress.

Less than two years later, administration officials worry about the impact of speed and scale – two things AI excels at – in cyberspace.

According to Will Loucks, senior director of intelligence at the Office of the National Cyber Director, over the past two years the number of exposed and known vulnerabilities has shot up. Threat actors exploit those flaws faster before defenders can fix them. Once inside, the time from initial access to full network control shrinks.

“So in other words, every stage of the cyber operations lifecycle that a threat actor has to move through to get to a victim network and achieve an outcome, they’re just moving through more quickly faster,” said Loucks at a July 16 event in Washington D.C.

Speaking about AI in particular, Loucks said one of the defining characteristics of the technology is its ability to lower barriers for threat actors.

“Sometimes speed and volume have a threatening aspect alone, even if sophistication isn’t quite increasing in the same way, and the reason for that is because it places pressure on defenders…to triage alerts more quickly,” he said.

Jordan Rae Kelly, former director for cyber and incident response on the White House’s National Security Council during Trump’s first term, told CyberScoop that the changes over the past two years reflect the lessons the White House has learned on the issue since returning to office.

In the early days of this administration, Kelly said, “there is a sense and a spirit that the Biden administration was limiting AI and there was a kind of a rip-it-all-off [attitude], everybody go and do whatever, we will be the biggest and boldest and brightest.”

“I love that talking point, but I think what you’ve seen is probably an education over the last 19 months, where people [in the White House] have said that’s a challenging premise to put into place, knowing about the potential downsides and capabilities,” she added.

Michael Daniel, former White House cyber coordinator under President Barack Obama, thinks the horse may already be out of the barn.

Daniel, now head of the Cyber Threat Alliance, a membership nonprofit group focused on cyber threat information sharing between industry and government, said his members report that AI is being used to do things “faster and at a slightly bigger scale” but aren’t yet seeing the flood of exploitation that analysts have warned about. Not yet.

“I think what we’re seeing right now [and] talking about is ‘okay, where are the step changes [in the cyber threat landscape] actually going to occur?” said Daniel. “Are we and when will we see the explosion in vulnerability reporting from these Mythos-like capabilities? That’s what’s really got their attention right now.”

But Mythos and OpenAI’s Daybreak models are restricted to select organizations, and neither has publicly released its most powerful cybersecurity models to the public. That dynamic won’t last.

The UK’s AI Security Institute estimates that open source and foreign LLM models are between 4-7 months behind frontier U.S. models. In that setting, it’s hard to stop the development of AI models worldwide through export controls or other limits.

“It’s not like we’re buying ourselves five to ten years on this,” he said. “We’re not, and so I’m not sure the impact on the defenders who are trying to obey the law is worth whatever small hiccup we cause for our adversaries.”

Kelly said there’s merit to the administration’s current position, even if it took time to get there. Many federal cybersecurity procedures that operated even a decade ago – such as a Vulnerabilities Equities Process that could take days or weeks to consider the pros and cons of keeping an exploit – are no longer practical.

“All of that work to some degree, is out the window, because you can’t meet with the regularity you would need to meet to adjudicate vulnerabilities that are being found in seconds and exploited in minutes,” said Kelly.

But Kelly and others say that’s also because AI capabilities in cybersecurity are developing faster than policymakers can react, even in the best of times.

Key questions remain and the administration’s balance between national security and backing domestic industry will likely shift  in response to new events.  The administration wants a framework that can predict and manage the risks of AI models today and tomorrow. That may be harder than it sounds.

“Do I think they’ve been clear? No,” said Kelly. “But I think it’s a place where clarity is really hard to achieve.”

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