The Federal Government may not like this but this is heading to as it should be. Sometimes the government needs to be saved from itself!
If a minor CA suddenly issued a cert for, say, mail.google.com, they'd be distrusted by every browser/OS within days. If a government made a habit of doing this, there'd soon be no trusted CAs in their jurisdiction.
The US probably has the best chance of getting away with this since they also have all the major OS/browser vendors in their jurisdiction. But if Mozilla/Apple/Microsoft/Google all mysteriously decided not to distrust a CA that was issuing bogus certs for high-profile sites, it would be pretty conspicuous.
The ability for CAs to issue extra certs to governments to enable MITM has been reduced a lot by CAA and HPKP.