According to Newsday, the state of Connecticut has scrapped their ongoing efforts to procure a new voting system that is compliant with HAVA. The article explicitly notes that:

Attorney General Richard Blumenthal said his office has contacted the U.S. Department of Justice to make sure it understands Connecticut’s situation and does not penalize the state for the delay. “We’re satisfied that this decision is legally sound,” he said, referring to Bysiewicz’s decision to stop the process. In a letter to state officials, the Department of Justice said it is willing to “work cooperatively with Connecticut” on achieving full compliance with the federal law.

One interesting aspect is that the procurement is being made very difficult because “state law has been interpreted as requiring that any voting machine show the entire ballot for a voter.” The rationale for why a state would require a full-face ballot to be presented to the voter is not clear in any of the academic literature on voting. In fact, Susan King Ross’s article, Disenfranchised by Design, has identified many problems with the current lever machine technology, part of which is associated with the ballot size.