If you're speaking about her directly or if she's currently on television, then the first sentence is correct. Saying someone is on the news typically means they're a reporter or are being interviewed.
The second sentence would never be correct but I think it might be going for the slang term "making news/headlines" (example: Her picture with him is making headlines - That picture is making news - both correct). If someone is getting more media coverage, they are "in the news."