What happened to the money and the project?
It's under construction.
http://www.mvn.usace.army.mil/pao/visitor/wbFactSheet12-00.asp
http://www.mvn.usace.army.mil/pao/response/projdex.htm
http://www.freerepublic.com/focus/f-news/1486753/posts?page=499#499