Catch up on Bay Area news today, including a wrongful death lawsuit in a San Jose daycare drowning, a new UC president focused on affordability, a tech firmโ€™s $140 million export violation settlement, Santa Clara Countyโ€™s shelter shortage, and a recall campaign targeting Contra Costaโ€™s DA.


Hello, and welcome to Bay City News for Tuesday, July 29, 2025. Here is a look at some of the top stories from across the region.

The parents of two young children who drowned in a San Jose daycare in 2023 have filed a wrongful death lawsuit. Seventeen-month-old Lillian Hanan and 19-month-old Payton Cobb died on Oct. 2, 2023, after allegedly being left unsupervised and falling into a backyard pool at the Happy Happy Home Daycare. The lawsuit names mother-daughter owners Shahin Gheblehshenas and Nina Fathizadeh, along with a third person associated with the business, alleging they are responsible for the children’s deaths. Both women were arrested shortly after the drownings and charged with felony child endangerment, to which they have pleaded not guilty. Their preliminary hearing is scheduled for Aug. 25 in Santa Clara County Superior Court. Lawyers for the families expressed frustration with the pace of the criminal case, stating that this civil lawsuit is the only path left to seek justice.

Shifting our focus now to higher education, James Milliken is set to become the new president of the University of California system on Aug. 1. Milliken is recognized for his commitment to college affordability, having previously implemented a policy at the University of Texas system that allows many undergraduate students to attend tuition-free if their families earn $100,000 or less annually. His career also includes significant leadership roles at the University of Nebraska and the City University of New York, where he successfully expanded a program designed to boost graduation rates for associate degree students. As president of the UC system, Milliken will oversee 10 campuses, six medical schools, and three national laboratories. He is expected to face major challenges, including federal funding cuts and growing pressure to enroll more California residents, even as out-of-state and international students provide substantial tuition revenue.

In business news, a major Silicon Valley semiconductor software firm has agreed to plead guilty and pay over $140 million in penalties. The charges stem from allegations that the company illegally exported sensitive American technology to a Chinese military university that had been blacklisted by the U.S. Federal prosecutors stated that San Jose-based Cadence Design Systems Inc., along with its wholly owned Chinese subsidiary, conspired to violate export control laws by providing semiconductor design software and tools to China’s National University of Defense Technology between 2015 and 2021. This was done via Chinese front companies, despite Cadence knowing the university’s restrictions due to its links to China’s military and nuclear simulation programs. Cadence president and CEO Anirudh Devgan stated that the settlements represent a mutually acceptable path forward and that the company has significantly enhanced its compliance processes.

From business, we turn to a critical social issue in Santa Clara County, where new data reveals a severe shortage of shelter beds for its homeless population. A point-in-time count conducted in January found over 10,700 homeless people in the county, but only 3,454 beds are available across 38 temporary shelters and programs. This means there is only one bed for every three unhoused individuals. Most of these beds are located in San Jose. County officials attribute a recent 30% increase in sheltered homeless residents to the opening of more beds over the past two years. The county is actively working to expand its capacity, with plans to open a 135-bed shelter in Palo Alto and another for up to 30 families in Santa Clara.

And continuing on the topic of housing and social services, the Alameda County Board of Supervisors is scheduled to hold a formal vote on Wednesday to allocate $810 million from Measure W. This sales tax was originally intended to address homelessness, but after a lengthy court battle, the accrued funds have been designated as a general fund, giving the supervisors discretion over their distribution. Last week, the board reached an unofficial, unanimous decision to dedicate 80% of the funds to homelessness programs and 20% to other social support services. However, local leaders and advocacy groups, including the Alameda County Mayors’ Conference and Oakland Mayor Barbara Lee, have strongly urged that the entirety of the funds be spent on homelessness solutions, emphasizing that this was the promise made to voters.

Moving to political developments in Contra Costa County, the Deputy Sheriff’s Association has announced a substantial financial contribution to the campaign seeking to recall District Attorney Diana Becton. The union has donated $50,000 to the “Recall District Attorney Diana Becton” group, marking the largest contribution the pro-recall effort has received to date. The recall campaign, which includes families of crime victims, has accused Becton of a “persistent cycle of unaddressed criminal activity” and a “lack of transparency regarding crime.” Campaign manager for the opposition to the recall, Champagne Brown, characterized the effort as a politically motivated attack. She stated that District Attorney Becton is focused on ensuring safety and justice for the community, aggressively prosecuting violent offenders, and expanding victim support services. The recall group needs to gather 72,556 signatures by Sept. 25 to place the recall measure on the ballot for voters.

And those are some of the top stories we’re following. Thank you for joining us for Bay City News.