It all boils down to funding yet again.
Technically, the DL&W Cutoff project should not be bound to new North River tunnels. All service on this line is to terminate at Hoboken Terminal and will not operate anywhere near Secaucus Junction. However, as noted, Trenton is dragging heels when it comes to funding (despite buying the Cutoff from Turco, Trenton has not put up $40 million [PA has] to get TEA-21 funds released towards the project).
West Trenton service is still not funded either. Nor is MOM, nor are the new North River tunnels that are but one stage towards relieving congestion on the High Line and in NYP.