Yes, it's true and ridiculous. Five sports have been completely denied of funding: table tennis, weightlifting, fencing, archery and badminton.
Here you can find out about it: http://www.uksport.gov.uk/news/2016/12/08/goal-set-for-tokyo-2020-as-investment-figures-are-announced
And here are the current investment figures: http://www.uksport.gov.uk/our-work/investing-in-sport/current-funding-figures
Note how modern pentathlon still gets almost 7 million. But sure, a sport like badminton that is quite popular in the UK and delivered the target of 1 medal in Rio gets nothing. Also a big middle finger for the men's foil team. All the years of work for nothing.