So is the funding cut off or does the bill have to pass other hurdles?
It has to pass the Senate.
If it passes, it faces a veto by Obama. Override unlikely, but it will be tied around the President's neck as an issue in the next election.
If it fails to pass the Senate, there are 23 Democratic seats up in 2012. Four of them have already announced they are retiring. There is an excellent chance the Majority will change.
The Senate may pass its own version of this Budget, leaving this provision out. It goes to conference at that point. If the house holds strong, there is the possibility of a government shutdown. Again, this becomes an issue in the 2012 elections.
After Jan. 2013, if we control both Houses of Congress, and the White House, this thing is toast.
Even sooner, if SCOTUS rules it unconstitutional.
“So is the funding cut off or does the bill have to pass other hurdles?”
Many, many other hurdles. But this was the critical first step.