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']
(..) And we face runaway deficits of almost $ billion... ...for this budget year that ends September th. That deficit is larger than the entire federal budget in . ...we will pay in interest this year on the national debt. ...our federal government payroll was less than $ billion. (..)2006 The Pursuit of Happyness