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']
(..) Oh Piper. For Heaven's sake. So this is my last post as a free woman. -Whatchu gonna right? -Hey! Uh-uh. Oh no. You cannot have a phone in here. This is a federal facility. You have to take that out. Oh. Can I...? Am I allowed to go out? He can take it out. So no? No phone. You knew that. (..)2013 TvShow: Orange Is the New Black Title: I Wasn't Ready Season: 1 Episode 1