The tree looks like a redbud. The larvae on the foliage is the caterpillar of the White Flannel Moth. This caterpillar is almost full grown and nothing to worry about. Usually they are not found in high enough numbers to cause much damage. They are too large to spray with Bt, a biopesticide that has low toxicty to humans and other animals. Do not handle the caterpillars as they have hairs that can cause serious skin irritations. The caterpillars may not be a problem next year.