States have spent only about 60 percent of the more than $3 billion they have received to replace antiquated or malfunctioning voting machines and otherwise improve voting, says a report released Tuesday.

The U.S. Election Assistance Commission said in its report that it began doling out funds to states in June 2004. As of Dec. 31, 2006, states had spent $1.8 billion but still had $1.3 billion in unspent federal funds.

The commission was created under the Help America Vote Act of 2002 to address voting problems identified in the disputed 2000 presidential election between Republican George W. Bush and Democrat Al Gore. It is the first federal aid program to help resolve voting difficulties.