The problem is that the CloudFormation template creates a RouteTable with the default route 0.0.0.0/0 correctly pointing to the IGW, however you don't associate the RouteTable with your subnets.

enter image description here

What you need to do is add these two Route Table Associations to the template:

        "Subnet1RT":{
            "Type" : "AWS::EC2::SubnetRouteTableAssociation",
                "Properties" : {
                    "RouteTableId" : { "Ref": "RouteTable" },
                    "SubnetId" : { "Ref": "Subnet1" }
                }
        },
        "Subnet2RT":{
            "Type" : "AWS::EC2::SubnetRouteTableAssociation",
                "Properties" : {
                    "RouteTableId" : { "Ref": "RouteTable" },
                    "SubnetId" : { "Ref": "Subnet2" }
                }
        },

Then Update the stack ...

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And re-check the Route Table

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Now you should be able to SSH to the instances:

~ $ ssh 54.209.123.119
Last login: Thu Nov  1 18:54:54 2018 from ...

       __|  __|_  )
       _|  (     /   Amazon Linux AMI
      ___|\___|___|

https://aws.amazon.com/amazon-linux-ami/2018.03-release-notes/
[ec2-user@ip-10-0-2-229 ~]$ 

Hope that helps :)