By functional Fortran, do you mean like a "functional programming language" or "more productive Fortran"? As one who has developed in Fortran before, I would also like to see enhanced functional capabilities, as well as a more productive way to write code. I have spent so much time on declaring variables and function arguments over and over across subroutines that it becomes quite a pain. To avoid writing many subroutine interfaces, I also tend to put everything in a single module. My dream is to combine the expressiveness of Lisp with the numerical performance and memory efficiency of Fortran and C.
I had not heard of Fortress before. It seems that Oracle's sponsorship of the project ended in 2012. Guy Steele emphasizes the difficulty of implementing Fortress's type system on virtual machines. [1]