$15 Million Federal Cuts Put McKinney’s Massive Park Project On Hold

A long-anticipated plan to transform a stretch of State Highway 5 in McKinney into a vibrant community connector — complete with pedestrian access, gathering spaces and a design aimed at reuniting neighborhoods split by the busy roadway — is now on hold after $15 million in federal funding was withdrawn.

Funding Pulled Amid Federal Cuts

The funding loss comes from changes in federal spending priorities. The $15 million allocation, part of former president Joe Biden’s Investing in America Agenda, was designed to help reconnect neighborhoods divided by transportation corridors. In McKinney, Highway 5 has long acted as a barrier, limiting residents’ access to schools, jobs, medical facilities and houses of worship.

The funds were awarded through the U.S. Department of Transportation’s Neighborhood Access and Equity grant program, which committed $80 million to pedestrian-focused projects across North Texas. But, according to WFAA, those funds were rescinded after the passage of the One Big Beautiful Bill Act — legislation signed by President Donald Trump on July 4 that included sweeping tax and spending cuts.

"We have been informed that $15 million in federal funding intended specifically for the Lower 5 Plaza project was withdrawn from the U.S. Department of Transportation’s Neighborhood Access and Equity Grant as part of the Big Beautiful Bill Act,” a spokesperson for the city of McKinney told Local Profile. “We are actively working with city council and our regional partners to assess the impact of this development on the project and to determine the most effective path forward."

As Local Profile previously reported, the Lower 5 Plaza is not the only North Texas project that could be affected by recent federal funding cuts. Klyde Warren Park – Phase 2, which would extend the existing pedestrian deck further south to create additional access and connections, could also lose funding. It is not yet clear whether this project will encounter similar obstacles. Local Profile reached out for confirmation but did not receive a response prior to publishing.

Vision For The Lower 5 Plaza

City plans envision the Lower 5 Plaza as a pedestrian-friendly bridge and public gathering space beneath the highway deck. The inverted park would “reknit” the community by restoring safe and direct pedestrian access between neighborhoods split by Highway 5.

Photo: City of McKinney

The project has been compared to Dallas’ celebrated Klyde Warren Park, which was built over Woodall Rodgers Freeway to reconnect the city’s Uptown and Downtown districts. But unlike its urban cousin, McKinney’s version would be an inverted pedestrian cap, placing a public plaza beneath a new bridge rather than on top of it — offering shade, weather protection and a distinctive gathering space.

For now, McKinney officials remain committed to the vision. But without the $15 million boost, the timeline for construction is uncertain.

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