It’s true. Unless a VFR aircraft squawking 1200 is within reception range of an operating control tower, it’s engine is automatically shut-down using the Mode J Lock-out and the pilot must perform an emergency landing. This is part of the new ADS-B system of aircraft traffic control. And since that will eliminate VFR flight, all aircraft will have to file IFR which, because of the sequester, will now take five hours after filing to receive a clearance. Airlines are installing emergency bunk rooms and medical clinics at airports now to help handle the passenger back-up.
I read the same thing on “The Onion.”