The Treasury Department is defending the government's change in its approach to the $700 billion bailout package.

The Treasury no longer plans to buy up troubled mortgage assets, but is instead looking into ways to shore up credit-card, auto-loan and other nonbank businesses.

Neel Kashkari, the interim head of the bailout, told lawmakers during a House hearing that "both banks and nonbanks may need more capital." He says restoring stability to the overall financial system is the best way to help homeowners.

Both Democrats and Republicans grilled Kashkari during the hearing. Ohio Democrat Dennis Kucinich says the changes break with congressional intent.

That's notable because Congress can block the release of the last $350 billion in rescue money, or put new conditions on its use.