As far as I know, the west lake corridor extension down towards Munster has started.
The double tracking over in other counties is still a go.
They have not made a decision on the best location for the South Bend station re-location. Local politicians are still pushing for moving it from the east side of the airport to the west side, despite their own economic impact report that they commissioned saying the best return on investment would be to put it downtown at Union Station. Even if that's a go, they're still pushing for a rail freight terminal at the west side of the airport, and hey, if the track's already there, we might as well put the passenger terminal there instead of downtown.
For some reason, they still think the South Bend airport is going to become an international air freight hub. Their master plan shows expanding the runway to the west. That would mean relocating the bypass, or burying it.
I can't see Chicago allowing South Bend to take business from them. Or Indy. Or Detroit. Or Cleveland.
In reality, who's going to use the most expensive and fastest form of freight shipping (air) to fly stuff to South Bend to put it onto the slowest form of freight shipping (rail) to get it into Chicago??? Rail shipping is only cost-effective for bulk materials. Bulk materials don't get shipped by air.
I don't know if you recall the South Shore tracks used to go up along the east side of Bendix Dr. and terminated 1/4 mile south of Lathrop? They crossed to the west to serve a couple factories just past Voorde Dr. Sometime in the 70's, they extended the tracks to the north, across Lathrop, then west across Bendix into the newly built Airport Industrial Park, and north all the way to old Cleveland Rd. 'They' said businesses were clamoring to be close to the airport, and were clamoring for rail service. Well, the tracks sat there until about 8-9 years ago, and they ripped them out. Not one railcar ever went in or out of that industrial park. Not one. So about 40 years of nothing. It kinda proves a point. Rail to small factories is not needed. It's only cost effective for bulk shipping. Trucks can handle the lower volumes.