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According to this, yes: "In May 2007, RSA Labs announced that Secret Key Challenge would be discontinued. Fortunately, due to the continued interest in our RC5-72 project we have decided to privately sponsor the prize and operate the RC5-72 project as before." (http://www.distributed.net/RC5) :)

It will still be paid out, but the prize distribution has changed from the original challenge. As per the link @fortex posted, it is now:

$1000 to the winner
$1000 to the winner's team (or to the winner if not on a team)
$6000 to a non-profit organization chosen by all participants
$2000 to distributed.net for building the network and supplying the code