If they do it like this will this mean the state is off the hook for future costs?
No, it means there will be much fanfare and pageantry from the federal government and representatives when the project gets the initial funds.
Then the fed-level folks will skip on along to their next sound bite, and let the state government take the heat for wasteful spending when the money runs out, the project lies half-finished, and the operating costs play Pac-Man with the state budget.