LICNYC recently posted some pics of the big tunnel going to Manhattan from Sunnyside.

Here's what it will eventually create:

Read all about it at the Federal funding report on the project.

The latest funding upDATE:
Construction began on the tunnels in both Manhattan and Queens in 2002. The project is scheduled for completion by December 2011 at a projected cost of $5.30 billion. Although MTA is requesting a total of $2.60 billion of Section 5309 New Starts funding, the amount of Federal share of the LIRR East Side Access project is still being negotiated. In addition, given the size of this project and the difficulty with dividing it into more than one operable segment, alternative funding mechanisms in lieu of a traditional FFGA are being investigated. FTA and MTA are working to identify an appropriate first phase of a funding commitment, anticipated to be ready by early FY 2003. The final amount of the funding commitment for this authorization period is still under consideration. Through FY 2002, Congress appropriated $68.23 million in New Starts funding for the continued development of the East Side Access project. To continue progress on this project, FTA requested $15.00 million in FY 2003 New Starts funding. FTA is recommending $75.00 million in FY 2004 New Starts funding for this project.