I live in the US, and yes, it's true. It was just passed by Congress and signed by the President. The company must be sold within a year (not by the end of the year, as you stated). Here's one news source, from the National Public Radio site:
RE: TikTok Banned in the U.S?.
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As for what happens next...well, court challenges are likely. Time will tell. I can't predict what "might" happen, but it's safe to say another app will surely come along in the event all this occurs.