I agree that he shouldn't have said that, but there's no reason to 'make a federal case out of' it. [='make a big deal about it']
Do you have to 'make a federal case out of' it every time I come home late?
Local police sought help from the 'federals'. [=(less formally) 'feds']
(..) the Identity Processing Program of America. Please insert your forearm into the forearm receptacle. Thank you. Please speak your name as it appears on your current federal identity card... - Document number GL. - I'm not sure if... You have entered the name "Not Sure". Is this correct, Not Sure? (..)2006 Idiocracy