The project was also already dead; the English Wikinews has had 10 "articles" posted in the last 3 weeks, two of which were trivial sports stories (a second-division Queensland football match, and the retirement of a pitcher whose last substantial year in MLB was 2019). The most recent story is that an amateur jazz group recently played at a library.
It will no longer be an attractive nuisance to the few who stumble across it. Rest in peace.
I don’t think this is a bad move, they might even want to divest from their other side projects too. They are mostly distractions and money sinks.
Hopefully they can now focus on making Wikipedia itself neutral.