You are right.

in this economy, it is really nobody's fault that a program is not moving forward.I have my own program that is at the verge of being cut as well. It is a terrible feeling.
Either way, I talked with team leader's boss. let him know that path forward is not clear to the team. I need clarification. actually I got clarification from him quite well. I let the team leader know that I talked with his boss and we have cleared out some of my concerns. We have built up a plan. Not sure if he is entirely happy but at least we will work together again.