This is mostly true. According to a press release on the website of Ryan Zinke, the Montana congressman who introduced the bill, the goal is to "implement a pause" on essentially all forms of legal immigration or accepting of refugees who have passports "issued by the Palestinian Authority" (so, Palestinian citizens). However, the bill doesn't seek to remove all Palestinians living in the United States, just ones who were let into the country on/after October 1st of this year. Zinke said in his press release that this proposal is "the most anti-Hamas immigration legislation I have seen and it’s well deserved." He also expressed distrust in the Biden Administration's ability to properly screen people coming into the United States.
The Washington Examiner and Huffpost have, among other smaller outlets, reported on this bill, but many major news organizations have yet to address it.