This is correct. It will decimate the Olympic sports for many reasons. Roster limits are now on sports like track and field (45) and cross country (17).
The BYU men's track team for example, has 70 athletes on it. Some of those are walkons. Have to get to 45 next year. Colorado just cut a senior XC runner that scored team points at the NCAA championships last year. SEC decided rather than 17/45, they were going for 10/35. 35 athletes on the track team means each event has an average of 1.7 athletes. Hope no one gets injured.
It's impact will be even bigger on men's sports when Title IX is considered. Many people used to dump 40 women on the XC team to offset some of the spots in men's sports. With a cap of 17, that means men from somewhere are going to get cut.
This is truly devastating for college sports not named football and basketball. Sucks for my son who is a D1 level runner but likely to go unrecruited or drop to DIII because there are estimated to be about 3K DI track people in the transfer portal before all is said and done. Is a coach going to take a risk on a good freshmen or pick a known entity from another roster.