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AB 1113

Federally qualified health centers: mission spend ratio.

2025-2026 Regular Session Introduced by Mark González

AB 1113 mandates California federally qualified health centers dedicate a minimum percentage of revenue to direct primary care services for underserved populations.

In committee: Hearing postponed by committee.
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Bill Summary · AB 1113

Legislative bill overview

AB 1113 requires federally qualified health centers (FQHCs) in California to maintain a minimum "mission spend ratio"—allocating a specified percentage of revenues directly toward primary care and health services for underserved populations. The bill aims to ensure these federally-subsidized facilities prioritize their original charitable mission rather than administrative overhead or ancillary spending.

Why is this important

FQHCs receive federal grants and tax benefits premised on serving low-income and vulnerable populations. Without spending requirements, some centers could accumulate reserves or redirect funds away from direct patient care. This bill addresses concerns that mission creep has reduced the effectiveness of public investment in safety-net healthcare infrastructure.

Potential points of contention

  • Operational flexibility: Strict spending ratios may limit centers' ability to invest in infrastructure, workforce development, or financial reserves needed for sustainability during funding gaps
  • Defining "mission spend": Disagreement over what counts toward the ratio (e.g., telehealth, preventive care, care coordination) could create compliance disputes and accounting burdens
  • Competitive disadvantage: California-only requirements might burden state FQHCs compared to counterparts in other states or disadvantage smaller centers with higher administrative costs

Compiled from official sources — confirm details with the bill’s official record.

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