McAllen commission approves phased $3 Uber/Lyft airport fee and permits for TNCs at McAllen International Airport

The McAllen City Commission approved one-year, nonexclusive operating permits for transportation network companies (TNCs) to operate at McAllen International Airport and agreed to a phased approach to implement a $3 per-trip user fee.

Airport staff explained that House Bill 100 authorized airports to assess passenger user fees for transportation network companies; staff recommended a $3 fee to help cover debt service for the airport's terminal expansion program. Staff reported approximately 4,000 Uber trips per month to the airport and estimated the $3 fee could provide about $4 million in debt-service funding for terminal expansion efforts.

Several commissioners questioned whether McAllen's passenger volumes and local fares justified a $3 flat fee, and some argued the fee would be proportionally burdensome for short local trips. Commissioners pointed to comparable fees at other Texas airports (examples cited: Midland, Brownsville, Lubbock) where fees vary and some airports charge similar amounts.

After debate the commission approved a phased implementation: the fee would be increased incrementally (the commission discussed a $1 increase every 90 days) until it reached $3, with contract language to coordinate roll-out with the TNCs. Commissioners directed staff to coordinate implementation logistics with the companies.

The commission framed the fee as a user or enterprise charge to support airport infrastructure, noting the airport operates as an enterprise fund and is not subsidized by the general fund.

What happens next: staff will incorporate the phased-fee language into the TNC permit agreement, coordinate with Uber/Lyft on implementation timing, and monitor passenger volume and impacts as the fee phases in.