Federally Qualified Health Centers in Texas are those receiving federal funds under Section 330 of the Public Service Act. FQHCs receive enhanced funding under Medicare and Medicaid and provide comprehensive services to underserved populations or geographic areas. These clinics also offer a sliding scale for fees charged to patients, are governed by a board of directors, and maintain a quality control program for services. There are 73 FQHCs in Texas, which operate more than 300 sites of care throughout the state. There are also 3 entities known as FQHC look-alikes which offer most of the same services but do not receive all the benefits of FQHCs.

These clinics are key in the effort to provide affordable, quality care for low-income populations. FQHCs are required to offer after-hours services and to design their hours of service to meet the needs of their particular service population. All Texans can receive services at FQHCs. Many who seek services in these clinics include individuals who are low-income (71 percent are at or below 100 percent of the federal poverty level), uninsured (42 percent are uninsured), and experience language barriers when accessing care otherwise (a third are most effectively served in Spanish).  In addition to primary and preventive care services, FQHCs offer supportive services such as case management, transportation and health education. FQHCs in Texas serve 1.2 million patients annually, providing 4.6 million annual patient visits.

Texas FQHCs receive about a quarter of their funding (27 percent) from Medicaid and another 22 percent in federal health center grants, together totaling $472 million in 2015. State and local funds comprise an additional 12 percent of funding ($116 million in 2015), with patient revenue accounting for 8 percent of Center funding ($74 million in 2015). Other categories comprising smaller proportions of total funding include private insurance, CHIP, private grants, Medicare and other fundraising revenue.