In the wake of the foreclosure crisis, safe and sustainable credit will be necessary to revitalize neighborhoods, especially in those communities that have been hardest hit. The Community Reinvestment Act (CRA) has driven trillions of dollars of safe and sound credit into low-wealth communities since its enactment in 1977. Experts from the National Community Reinvestment Coalition (NCRC), the National Urban League, National People’s Action, and more made the case at a House Financial Services Committee hearing on the CRA that expanding and modernizing this critical tool would help get America back on the path to recovery. Currently, the CRA Modernization Act of 2009 contains the important provisions critical to updating and expanding the CRA, although we expect a revised bill to be released this year.

Woodstock Institute and over 300 local and national consumer and community organizations called for immediate Congressional action on a proposal to put Americans back to work and prevent more layoffs and cuts in crucial frontline services.  The proposal, the Local Jobs for America Act (H.R. 4812), would provide $100 billion over two years, creating or saving 750,000 jobs providing local services and 250,000 education jobs.

Woodstock Institute staff and members of the Illinois Community Investment Coalition (ICIC) left a big impression at last month’s National Community Reinvestment Coalition Annual Conference. Woodstock President Dory Rand, Senior Vice President Geoff Smith, and Vice President Tom Feltner shared Woodstock’s expertise with community investment advocates from across the country as presenters on panels with topics inlcuding strategies to influence elected officials, foreclosure prevention, and promoting sustainable lending.

Senate Banking Committee Chairman Chris Dodd (D-CT) released the Restoring American Financial Stability Act of 2009 today. Woodstock Institute believes the bill contains important provisions that will protect consumers and prevent the risky lending and abusive practices that led to the financial crisis. Sen. Dodd’s proposal will create a Consumer Financial Protection Bureau to crack down on the most egregious abuses from big banks and allow states to act as first responders to stop problems before they escalate.

Financial reform is at a critical juncture in Washington. The House has already passed a bill to create a strong and independent Consumer Financial Protection Agency (CFPA) to put consumers’ interests over those of Wall Street and crack down on the risky lending that spurred the financial crisis. However, Senate Banking Committee Chairman Chris Dodd (D-CT) continues to compromise the agency’s independence in the interest of bipartisan support.

So many of us—families and businesses—are struggling to pay our bills during these difficult times.