From the 2005 FRP

A reduction in the VOR population (only) is expected to begin in 2010.
The proposed reduction will transition from today’s VOR services to a
minimum operational network (MON). The MON will support IFR operations
at the busiest airports and serve as an independent civilian backup
navigation source to GPS and GPS/WAAS in the NAS. Section 3.2
discusses the transition in more detail.

The FAA plans to sustain existing DME service to support en route
navigation, and to install additional low-power DMEs to support
Instrument Landing System precision approaches as recommended by the
Commercial Aviation Safety Team. The FAA may also need to expand the
DME network to provide a redundant RNAV capability for terminal area
operations at major airports and to provide continuous coverage for
RNAV operations at en route altitudes."


Conclusion: The "phase OUT" is no longer the plan. Some undefined
and certainly changeable "phase DOWN" is the current plan.

Ron Lee