Council reviews plan to use grants and local funds to underwrite new nonstop air service at Killeen Regional

Killeen city staff asked the council to authorize up to $750,000 per year for three years to strengthen a Department of Transportation grant and market a minimum revenue guarantee (MRG) to entice a second airline to add nonstop service at Killeen Regional Airport (GRK).

Aviation staff said the city received a $1.0 million Small Community Air Service Development Program (SCA SDP) grant in 2021 and that the current grant will expire in January 2027. The requested local commitment—drawn from the aviation enterprise fund and airport reserves—would be paired with $1 million in federal grant funds, $200,000 from the Killeen Economic Development Corporation and contributions from local partners to reduce risk to carriers starting service. “All funds will come from the aviation fund. There will be no taxpayer dollars utilized,” airport staff told the council.

Council members asked how the MRG would be administered, whether dollars were contingent on an airline agreement, and how long the guarantee would be available. Staff said the funding is intended to cover passenger revenue shortfalls that an airline might face while a new route matures and that unused funds would not draw on the general fund.

Public commenters and some council members supported investing in the airport to deliver more flight options and competition on fares; supporters said additional carriers would improve connectivity for residents and strengthen economic development prospects. Opponents and some members asked for more time to review contract language and for staff to confirm that Georgetown's request for similar incentives would not set undesirable precedents.

The council heard the presentation and asked staff to address outstanding contractual questions and return with final documents for a vote.