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']
(..) I know I'll feel better after I do this. I love you. Wait. I won't be long. I can't park in front like this. It's a federal building! He's gonna do the same exact thing that I said. A nine millie. Bullets. Another nine millie. (..)1994 Léon: The Professional
(..) Here. It's for a contract. Twenty grand, right? His name is Norman Stansfield, and he's in room ... in the D. E. A. building, Federal Plaza. - I'm not taking it. - Why not? - It's too heavy. - Well. Will you rent me your gear (..)1994 Léon: The Professional