The McKinney airport expansion lawsuit landscape now spans three separate cases: a federal environmental challenge that was dismissed in October 2025 on jurisdictional grounds, and two active state-court disputes in Texas over how the city is paying for the project. The environmental group behind the federal case has said it is weighing further action, and the Texas Attorney General has intervened against McKinney in one of the bond fights.
The Federal Environmental Case
On May 26, 2025, the North Texas Conservation Association filed a petition in the U.S. Court of Appeals for the District of Columbia asking the court to vacate the environmental assessment for the McKinney National Airport expansion and force a more thorough review.1KERA News. Environmental Group Seeks to Ground McKinney Airport Expansion
The environmental review at the center of the case was not prepared by the FAA. Under the FAA’s State Block Grant Program, the National Environmental Policy Act review was delegated to the Texas Department of Transportation’s Aviation Division. TxDOT completed the Environmental Assessment and, on April 21, 2025, signed a Finding of No Significant Impact/Record of Decision concluding the project would have no significant environmental impact.2City of McKinney. Environmental Assessment The FONSI/ROD stated it was issued “on behalf” of the FAA and directed anyone wishing to challenge it to file in a U.S. Court of Appeals within 60 days under 49 U.S.C. § 46110.3TX3D News. Federal Court Dismisses McKinney Airport Lawsuit
What NTCA Alleged
NTCA general counsel Steven E. Ross argued the assessment failed to meet NEPA standards and did not adequately address the project’s potential impacts on air quality, noise pollution, endangered species, and water resources.4WFAA. North Texas Conservation Group Challenges McKinney National Airport Expansion The group specifically alleged the review did not account for effects on the Heard Natural Science Museum and Wildlife Sanctuary, a nature preserve near the airport, and complained of insufficient public engagement and failure to consider alternatives.1KERA News. Environmental Group Seeks to Ground McKinney Airport Expansion
NTCA pointed to a June 2024 email in which the FAA itself said it “won’t be able to sign off on the EA” because the document had not been prepared in accordance with FAA requirements.3TX3D News. Federal Court Dismisses McKinney Airport Lawsuit McKinney Mayor George Fuller called the lawsuit a “political stunt” and said NTCA president Paul Chabot had formed the organization specifically to file it. Chabot called those comments “unprofessional.”1KERA News. Environmental Group Seeks to Ground McKinney Airport Expansion
Why the Court Dismissed the Case
A three-judge panel of the D.C. Court of Appeals dismissed the case on October 29, 2025, granting motions from the FAA, TxDOT, and the City of McKinney.3TX3D News. Federal Court Dismisses McKinney Airport Lawsuit The court held it lacked jurisdiction because the environmental assessment and FONSI/ROD were not “orders issued by the FAA” under 49 U.S.C. § 46110. Since TxDOT issued the documents under the State Block Grant Program rather than the FAA issuing them directly, the petition fell outside the court’s authority.5KERA News. Federal Judges Dismiss Environmental Lawsuit Seeking to Block McKinney Airport Expansion
The ruling was purely procedural. The court never decided whether the environmental review was actually adequate, leaving NTCA’s claims about air quality, noise, endangered species, and the Heard sanctuary unresolved on the merits. The FONSI/ROD had itself instructed the public to seek review under the statute the agencies later argued did not apply.3TX3D News. Federal Court Dismisses McKinney Airport Lawsuit In a press release after the dismissal, NTCA said the fight was “far from a done deal” and that it was evaluating further actions.5KERA News. Federal Judges Dismiss Environmental Lawsuit Seeking to Block McKinney Airport Expansion
The Collin County Bond Lawsuit
Separately, NTCA and four individual plaintiffs sued in Collin County to block roughly $30 million in bond issuances by the McKinney Community Development Corporation. The complaint argues that under the Texas Local Government Code and the McKinney City Charter, airport projects must be funded through revenue generated by the airport itself, not general sales tax collections, and that the city is improperly using MCDC sales tax revenue to back the bonds.6Yahoo News. NTCA Sues to Block $30M McKinney Airport Bonds
The city, represented by Norton Rose Fulbright, has argued that the MCDC operates under a chapter of state law authorizing the use of sales tax proceeds for bond repayment, and has sought dismissal of claims against individual city officials on governmental immunity grounds. As of mid-2026, the assigned judge had recused himself and no replacement had been appointed.7Gilmer Mirror. New Texas Supreme Court Ruling and Legal Developments Raise Further Questions About McKinney’s Airport Bond Plan
The financing question these plaintiffs raise has weight because McKinney voters rejected a $200 million airport bond measure in May 2023 by roughly 59 to 41 percent.8Community Impact. Airport Expansion Grounded by McKinney Voters The city then assembled funding from other sources, including a $30 million commitment from the MCDC and $22.4 million from the McKinney Economic Development Corporation, both drawing on local sales tax revenue.9Community Impact. McKinney Airport Expansion Project Gets $52.4M in Funding Commitments
The Travis County Bond Validation Case
In April 2026, the City of McKinney and the MCDC filed a petition in Travis County under the Texas Expedited Declaratory Judgment Act seeking to validate approximately $30 million in 2026 refunding bonds. The refinancing would extend the city’s debt obligations from 2032 to 2056.7Gilmer Mirror. New Texas Supreme Court Ruling and Legal Developments Raise Further Questions About McKinney’s Airport Bond Plan
Texas Attorney General Ken Paxton intervened against the city. In a May 15, 2026 filing, Paxton’s office argued that the MCDC does not qualify as a bond “issuer” under state law and therefore cannot use the expedited validation process. The Attorney General also challenged the city’s claim that refinancing would produce millions in savings, saying total repayment obligations could rise from roughly $36.7 million to over $45.6 million, adding more than $9 million in long-term debt despite the extended timeline. The filing raised further concerns that the federal TIFIA loan agreement underlying the bonds may expose the city to liabilities beyond what Texas law permits, including indemnification clauses and potential waivers of governmental immunity.10North Texas Conservation Association. Attorney General Filing
Judge Aurora Martinez Jones is hearing the case. A hearing on the Attorney General’s plea to the jurisdiction was scheduled for June 29, 2026, with a potential trial date of July 20, 2026. If the court denies the jurisdictional challenge, the Attorney General may immediately appeal, which could stay the proceedings.11Texas Scorecard. AG Paxton Sides With Taxpayers Over City of McKinney
Neighboring Towns and the Broader Opposition
The litigation grew out of years of pushback from residents and officials in nearby towns. Fairview, the closest municipality to the planned runway, and Lucas have both formally opposed the expansion. Fairview’s then-mayor Henry Lessner said his town bore the brunt of airport noise and pollution and reported 50 to 100 constituent calls per week on the issue. Lucas Mayor Jim Olk argued the city had rushed forward without studying the regional impact.12Local Profile. Fairview, Lucas Oppose McKinney Airport In September 2025, the Fairview Town Council voted unanimously to create a citizen task force, led by Lessner, to analyze the expansion’s effects on property values, air quality, noise, and the town’s rural character.13Dallas Morning News. Fairview Launches Taskforce Over McKinney Airport Expansion
Where the Project Stands
None of the pending litigation has stopped construction. The commercial terminal reached vertical construction in December 2025, and the project remained on schedule for a November 2026 completion as of mid-2026. A separate north runway extension was expected to be finished by October 2026, and work on Taxiway C and the FM 546 roundabout began in February 2026.14City of McKinney. Construction Updates In December 2025, the McKinney City Council signed a five-year airline use and lease agreement with Avelo Airlines, the airport’s first commercial carrier.15City of McKinney. McKinney Signs Airline Agreement With Avelo Airlines The environmental claims remain legally unresolved, and the outcome of the two bond cases will determine whether the funding structure holding the project together survives intact.