Hmm, question everything.
I don't know if I'd spend 7.5 million into it, but if there was some reasonable thought that it might be successful, and I was the US government, I'd certainly sink at least a cool million into it. It probably is quack science/pseudo science...HOWEVER...the idea that the earth rotated around the sun, the idea that the earth was round, and other such items now accepted as fact were also at one time considered quack sciences.
Heck, the idea of man being able to build a flying machine other than a balloon at one time was considered a pseudo science, and a waste of money. The United States didn't see much use of it either even after flying machines were built...at least until WWI.
I think the mind is a powerful thing. I personally don't expect anything from this pseudo science of psychic teleportation...BUT if someone were actually able to do that...and I passed it up...I'd kick myself for at least not delegating some money into it's investigation. However, I think I'd invest more into the person playing chess with only their mind before investing into more powerful psychic ideas...invest in the mind control over computerized items first, and build a base of what the mind can or cannot do with current technology.