Yes, this is real news. I found this reported on Gundam Guy, who got it from Kotaku. You can find the whole article here: http://kotaku.com/5921304/japanese-politicians-are-thinking-about-building-gundam-like-real-working-gundam
Basically, Japan's Liberal Democratic Party is seriously discussing the construction of a real life Gundam for use in the Self Defense Force. They are apparently going to talk about it on Nico Nico Live, which reeks pandering to a young nerd audience. They did an estimate back in 2008, and they believe it would cost about $725,000,000 for the parts and materials required to build a Gundam-sized mecha weapon.
Now, a lot of people are furious over this. You would think anime nerds and Gundam fans would be all over the idea, but we've got to get realistic sometime. As a diehard Gundam fan, I would LOVE to see a fully functioning giant robot, but this is just bat-shit insanity. First of all, our current level of technology would make it impossible to actually create a functioning 60-foot robot. But more importantly, there really isn't a point to having giant robots fight our battles. It's cool in anime, but it would never work in real life.
Can you imagine a giant slow moving contraption trying to fight off fighter planes and smaller targets on the ground? It would never catch up, and be hit by a missile from a blind spot before it could even react. Now, when the LDP say Gundam, they actually mean just a mecha weapon in general, so it could just be something small like the robots in Avatar. That would actually work. But not a Gundam, which would crumble under its own weight with its slim legs.
The most important thing that's got everyone riled up is the fact that Japan is still in a recession. They are currently going through some tough times, so it really is insane for politicians to be talking about trying to build a giant robot when the cost could solve their problems already. It would totally be awesome, but...crazy.