The McKinney National Airport commercial terminal project hit a major funding milestone on November 18 when City Council approved a $14.8 million grant agreement with the Texas Department of Transportation. The state funding covers infrastructure already under construction on the airport’s east side, including the passenger terminal, parking facilities, and terminal loop roadway that will support commercial airline service expected to launch in late 2026.
Airport Director Kenneth Carley confirmed the funds apply to active construction. “This is all for the infrastructure that is under construction today: the terminal building, the parking, the terminal loop roadway,” he said. “Pretty much everything that will enable the east side to accommodate commercial service going forward.”
The approval comes five months after officials broke ground on the $79 million eastside development project in July.
What the McKinney National Airport Commercial Terminal Funding Covers
According to city legislation, the TxDOT grant will fund a comprehensive scope of eastside improvements beyond just the terminal building. The project includes construction of a commercial service passenger terminal, aircraft apron, vehicle parking lots, and terminal loop roadway. Supporting infrastructure includes a fuel farm, de-ice facilities, and utility systems necessary for year-round commercial operations.
The grant also covers Taxiway C Phase 1 and taxiway connections, plus the FM 546 roundabout that will provide vehicle access to the terminal facilities.
Under the agreement, TxDOT provides $14.8 million while McKinney covers at least 10% of total project costs. The city is responsible for all expenses exceeding the grant amount per the HB 500 rider, with its share funded through the Capital Improvement Program.
Terminal Specifications and Capacity
The new terminal will span approximately 46,000 square feet and open with four gates, with infrastructure in place to expand to six. Passenger capacity projections estimate 200,000 travelers in the first year of operations, scaling to as many as one million annually by year five.
On-site amenities will include car rental facilities, food and beverage concessions, and a 980-space public parking lot designed to expand to 1,450 spaces. The facility will also feature aircraft de-icing capability and above-ground fuel storage, signaling the city is building for sustained, year-round commercial operations rather than seasonal or limited service.
Houston-based Avelo Airlines has announced intentions to launch service from McKinney National with as many as three daily flights on Boeing 737 aircraft once the terminal opens.
Runway Extension and Active Construction
While terminal construction proceeds on the east side, significant airfield improvements are underway across the airport.
McKinney National is currently extending Runway 18/36 by 500 feet at the north end. The project is in a nine-month settlement period before pavement construction begins, with completion anticipated in October 2026. This timeline aligns with the commercial terminal opening.
The Taxiway A Realignment and Rehabilitation project is nearing completion, with Taxiway A3 now open and Taxiway B3 permanently closed and demolished. A new Aircraft Rescue and Fire Fighting access road is under construction, with project completion expected in November 2025.
Construction on Taxiway C and the FM 546 roundabout is scheduled to begin in January 2026.
Funding Structure: How McKinney Filled the Gap
The $14.8 million TxDOT grant provides substantial funding for the McKinney National Airport commercial terminal project, which previously faced a $14.3 million gap the city aimed to fill through state or federal sources. Voters rejected a $200 million airport bond measure in 2023 and a $50 million bond in 2015, forcing the city to assemble funding from alternative sources.
The construction contract with Swinerton Builders totals just under $58 million, funded through a combination of $30 million from a McKinney Community Development Corporation bond, $15 million from a McKinney Economic Development Corporation bond, and $8 million from Tax Increment Reinvestment Zone #2 fund balances.
The city is also pursuing a $30 million Transportation Infrastructure Finance and Innovation Act loan and continues seeking additional federal funding through the FAA.
Current project scope represents a significant reduction from earlier proposals. Plans were scaled back from 144,000 square feet to 45,000 square feet, reflecting a more measured approach to commercial service entry.
Legal Challenge Dismissed
A federal court recently dismissed a lawsuit filed by the North Texas Conservation Association challenging the project’s environmental assessment. The three-judge panel ruled the Environmental Assessment and Finding of No Significant Impact were TxDOT decisions under the State Block Grant Program, not FAA orders, and dismissed the case for lack of jurisdiction.
The ruling allows construction to continue under the existing environmental assessment without revision or additional federal review. For more information on the McKinney TKI Airport check out the city’s site.
Why It Matters for Land and Development
The McKinney National Airport commercial terminal becoming operational changes the accessibility equation for northern Collin County and surrounding areas. The airport currently generates an estimated $299 million in annual economic impact, with projections suggesting that figure could exceed $400 million after commercial service launches.
The city’s stated council goal ties directly to land use: “Identify and implement land use regulations and policies which preserve and expand long-term operational excellence.” This signals municipal intent to protect airport-compatible zoning in surrounding areas, which could influence development patterns and land values near TKI.
The expansion is projected to create more than 1,800 jobs and generate $394 million in economic impact during its first three years of commercial operations.
For landowners and developers in the FM 546 corridor and eastern McKinney, the McKinney National Airport commercial terminal timeline creates a defined window for positioning. Late 2026 is no longer speculative. Construction is underway, an airline has announced plans to serve TKI, and funding is now substantially in place.
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