Hold Harmless was implemented during COVID-19 when reimbursements based on attendance would have devastated the industry. Being paid by enrollment vs attendance created a stable income for providers. Hold Harmless is set to expire in July 2025,forcing programs to return to being paid based on attendance. If we do not create a new reimbursement on time or based on the true cost of care and providers lose Hold Harmless, it will destabilize the industry, causing chaos in CA with childcare programs closing and families unable to work.