The McKinney National Airport commercial terminal project reached a major funding milestone on November 18, 2025, when the City Council approved a $14.8 million grant from the Texas Department of Transportation (TxDOT). The grant will fund key 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 that the funds apply directly to ongoing construction. “This is all for the infrastructure that is under construction today: the terminal building, the parking, the terminal loop roadway. Pretty much everything that will enable the east side to accommodate commercial service going forward,” he said.

The approval follows the July 2025 groundbreaking for the $79 million eastside development project.

Funding and Project Scope

The TxDOT grant covers:

• Passenger terminal and aircraft apron
• Vehicle parking lots and terminal loop roadway
• Supporting infrastructure, including a fuel farm, de-icing facilities, and utility systems
• Taxiway C Phase 1 and taxiway connections
• FM 546 roundabout for vehicle access

Under the grant agreement, TxDOT provides $14.8 million, while the city covers at least 10% of total project costs. Additional expenses beyond the grant are funded through the Capital Improvement Program.

The construction contract with Swinerton Builders totals just under $58 million, supported by:

• $30M from a McKinney Community Development Corporation bond
• $15M from a McKinney Economic Development Corporation bond
• $8M from Tax Increment Reinvestment Zone #2 fund balances

The city is also pursuing a $30M TIFIA loan and additional federal funding through the FAA.

Terminal Specifications and Operations

The new terminal will cover approximately 46,000 square feet with four gates initially, expandable to six. Passenger traffic is projected at 200,000 in the first year, reaching up to one million by year five.

Amenities include:

• Car rental facilities
• Food and beverage concessions
• A 980-space public parking lot (expandable to 1,450)
• Aircraft de-icing and above-ground fuel storage

Avelo Airlines has announced plans to operate up to three daily Boeing 737 flights from the new terminal.

Airfield Improvements

Additional airport projects include:

• Runway 18/36 extension by 500 feet, completion expected October 2026
• Taxiway A realignment and rehabilitation, with Taxiway A3 open and B3 closed
• New Aircraft Rescue and Fire Fighting access road, expected completion November 2025
• Taxiway C construction and FM 546 roundabout scheduled for January 2026

Legal and Environmental Updates

A federal court dismissed a lawsuit challenging the airport’s environmental assessment, allowing construction to continue without revisions or additional federal review.

Economic and Development Impact

The commercial terminal is expected to generate:

• 1,800+ jobs
• $394 million in economic impact during the first three years

The airport currently produces $299 million annually, with projections exceeding $400 million after commercial service begins. The expansion also strengthens municipal goals for land-use regulation around the airport, influencing development patterns and property values in eastern McKinney.

With construction underway, airline commitments in place, and funding secured, the terminal’s late 2026 launch is now firmly on the horizon.