We study channelization and slope destabilization driven by subsurface (groundwater) flow in a laboratory experiment. The pressure of the water entering the sand pile from below as well as the slope of the sand pile are varied. We present quantitative understanding of the three modes of sediment mobilization in this experiment: surface erosion, fluidization, and slumping. The onset of erosion is controlled not only by shear stresses caused by surfical flows but also by hydrodynamic stresses deriving from subsurface flows. These additional forces require modification of the critical Shields criterion. Whereas surface flows alone can mobilize surface grains only when the water flux exceeds a threshold, subsurface flows cause this threshold to vanish at slopes steeper than a critical angle substantially smaller than the maximum angle of stability. Slopes above this critical angle are unstable to channelization by any amount of fluid reaching the surface.