It means that this is a cabinet decision, not (yet) legislation. It still has to go through the Bundestag. Given the opposition within the SPD and the idea being very unpopular among voters, it is not yet clear whether this will actually become law.
It is still very worrying and the unfortunate result of a lot of things going wrong at the cabinet level.
It hasn't even been formally approved by the cabinet. Right now it's just a political agreement between the coalition party. A law still has to be drafted that the cabinet can then submit to the Bundestag.