Latest news I've heard is in this similar thread from a month ago. Short version: In a few years maybe.
I'm one of those cyclists that has trouble on the hill. I walk my bike up it going eastbound. Haven't tried it westbound yet.
Here's another thread where I summarized the state of the other Montour Trail projects, to the best of my knowledge.
Folks interested in this trail might consider becoming Montour Trail Council members to support the trail construction. Or even volunteer to help build it. Unlike most local trails, they use grants only for those elements that can't safely be done by volunteers, such as installing bridges. Volunteers do the rest.