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After water attacks, Capitol Hill offers its own proposal for an AI-cyber test program

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.”

The post After water attacks, Capitol Hill offers its own proposal for an AI-cyber test program appeared first on CyberScoop.

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

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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764 splinter group leader sentenced to 40 years in jail

A San Antonio man who sexually exploited children while leading 8884, an offshoot of the notorious violent extremist collective 764, was sentenced to 40 years in prison in federal court Wednesday, the Justice Department said. 

Alexis Aldair Chavez began associating with 764 as a child in 2022 when a co-conspirator introduced him to 7997, one of many 764 offshoots affiliated with the Com. The sprawling nihilistic network of thousands of people, typically between 11 and 25 years old, seek to foster social unrest by destroying civilized society through the corruption and exploitation of children and other vulnerable populations.

The 19-year-old, also known as “Zack” and “Zack8884,” attempted to coerce a girl to commit suicide and blackmailed another girl into self-mutiliation, animal torture and illicit content production in late 2023, according to court records. He later worked with multiple co-conspirators and blackmailed some of his victims to coerce other girls to degrade themselves on camera and produce child sexual abuse material (CSAM).

Chavez was arrested and has been detained without bail since October 2024. He pleaded guilty to multiple crimes involving the sexual exploitation of children in December 2025 and faced up to 60 years in prison for racketeering, distribution and possession of CSAM.

“Chavez’s crimes reveal the ruthless exploitation and manipulation at the core of nihilistic violent extremist groups,” John A. Eisenberg, assistant attorney general for national security, said in a statement. 

“These organizations target children as part of their broader mission to spread terror. These groups ultimately seek nothing less than the destruction of our society,” he added. “The National Security Division will use every resource at its disposal to identify and prosecute 764-linked criminality and to protect the most innocent among us from these predators.”

The indictment filed against Chavez in the U.S. District Court for the Western District of Texas details a series of horrifying crimes he committed with co-conspirators and some of his victims. 

Prosecutors said Chavez and a co-conspirator coerced a girl to cut her tongue, and torture and kill a cat on a live video call in late 2023. He and co-conspirators also, that same month, groomed and extorted several other girls to commit self harm and degrade themselves on camera.

Allison Nixon, chief research officer at Unit 221B, told CyberScoop the sentence is appropriate even if people understandably dislike imprisoning young people. 

“In this space, a certain personality profile is highly predictive of who will risk a prison sentence like this: an obsession with maximizing harm,” she said. 

“Reoffending after release is a huge problem. All major global hacking incidents from the Com are done by serial reoffenders — all obsessed with harmfulness, some graduated from the 764 sextortion space,” Nixon added.

Too many jurisdictions are naive in how they handle cases involving members or associates of the Com, allowing these criminals to go home to parents who won’t supervise them, she said.

Officials pressed on this in their reaction to Chavez’s sentencing as well. “Parents need to know what their children are doing online and must stay engaged, ask difficult questions, and not fall into the trap of believing their child is ‘just playing games’ or ‘just talking with their friends,’” Justin R. Simmons, U.S. attorney for the Western District of Texas, said in a statement. 

“There is darkness present within many people in this world that want nothing more than to see the United States and western civilization fail. There is no limit to the actions these individuals will take to accomplish that goal, including torturing and abusing children,” Simmons added.

Chavez, who was also ordered to pay $10,000 in restitution and serve lifetime supervised release, joins other 764 members already serving long sentences for similar crimes. Bradley Chance Cadenhed, who founded 764 as a 15-year-old in 2021, was arrested later that year and sentenced to 80 years in prison in 2023. 

When the FBI executed a search warrant at Chavez’s residence in July 2024, prosecutors said he came out the backdoor and threw his phone over a neighbor’s fence in an attempt to hide evidence.

Chavez’s sentencing follows a period of heightened law enforcement activity, which has netted arrests of multiple alleged 764 leaders and members. Some of the alleged 764 members arrested since 2025  include: Leonidas Varagiannis and Prasan Nepal, Baron Cain Martin, Tony Christopher Long, Erik Lee Madison, Zachary Sweeney and Aaron Corey. 

“True rehabilitation is the best outcome, but no one knows how,” Nixon said. 

“The total number of offenders who fit this harm-obsessed profile is vanishingly small. Giving them maximum sentences won’t overflow jails,” she added. 

Law enforcement and judges have to be realistic about what it takes to prevent the victimization of children, and handing down lifelong or lengthy prison sentences strikes the right balance between the rights of the offender and society, Nixon said.

FBI officials and agents who track these offenders and gather evidence on their crimes draw similar conclusions. 

“Nothing is more abhorrent than those who prey on children and other vulnerable members of our society and this defendant will pay a steep price for doing just that,” Coult Markovsky, acting assistant director of the FBI’s counterterrorism division, said in a statement.

“This sentencing demonstrates the FBI’s unwavering resolve to identify, hunt down, investigate, and prosecute criminals like Chavez who prey on children through violent online networks, including 764, and orchestrate horrific, unspeakable acts of exploitation and violence,” Daniel Faith, special agent in charge of the FBI San Antonio field office, said in a statement. 

“These predators use social media, messaging apps, gaming platforms, chat rooms, and video services to groom vulnerable children,” Faith added. “Staying engaged in your child’s online life, maintaining open communication, recognizing the warning signs, and reporting suspicious online activity to law enforcement are critical to stopping these offenders.”

The post 764 splinter group leader sentenced to 40 years in jail appeared first on CyberScoop.

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