I think it's now in limbo again. I think I read somewhere that they dumped all the money into Fulton Street rebuild, and the next one is to fix the 7 line (or something like that). I don't know why it's so hard to build the 2nd Ave line. There is a real need, and most of the tunnels are already there.
I believe it'll come down to 4/5/6 having a major breakdown, and then they realized they couldn't delay 2nd ave line anymore.