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I understand that institutionalized racism has long been and continues to be a thing, where predominantly white neighbourhoods are kept quiet and intact while neighbourhoods whose residents are predominantly other races end up being the first target for displacement and "physical impacts". Most likely the land in the neighborhood of the selected alternative costs lower than that of the other neighbourhood, which isn't Amtrak's fault but it is one of the facets of this institutional racism.
The Interstate Highway System is a prime example of this in many metro areas, and ironically improving this rail corridor would be helping to reverse the damage by making alternatives to motor vehicles more attractive.
On the other hand, this effort is treading towards the line of NIMBYism. With proper engineering, the effects of tunneling under the neighbourhood are overstated.
Still, I think that if there are legitimate health concerns, the ones who pay the most in direct and indirect costs should receive commensurate benefits. Provide better transit to the neighbourhood that connects to the nearest station serviced by the future corridor. Subsidize premium comprehensive healthcare for these residents to help address any concerns from construction impacts. Fund soundproofing improvements if noise impacts are a concern.