You mean south to 21 and the airport? I'm not sure. Everything I've seen from NJ Transit, everything I've been able to find on the subject online tells me no, the project is on hold for now and may actually be totally scrapped in favor of a PATH extension to the airport.
I wanted to give everyone here a little bit of an update as well.
1) The Kearny extension is now considered Phase 1 of a broader expansion plan.
2) The North Jersey Transportation Planning Authority is including this plan in their draft plan for projects for 2009-10.
3) We have the explicit support of Kearny's Mayor Al Santos and may have the support of East Newark's Mayor Joseph Smith as well. I have been trying to reach Stefan Pryor, Deputy Mayor of Economic and Housing Development for the City of Newark, to gauge his support for this plan and to try and get some idea of how we could fund this project.
4) As pertains to #1 and #3 above, the plan is to expand the Newark City Subway all along the former Boonton Line tracks and along the unnamed freight line which meets the Boonton Line at Kearny's eastern border and goes through Harrison and East Newark before crossing back over the Passaic into Newark and northward to Clifton and Paterson. I haven't decided which would be better yet - stopping in Clifton near the train station or stopping in Paterson just shy of its train station. The details and a revised project description are at the original link (thank God for Google Docs!). Anyone who needs the link again, here you go:
Let me know what you think, and if anyone has a way to get Stefan's attention, please please please let me know!