Actually, not true at all.
The Sedition Act did not criminalize criticism of the Federal government.
What it did was effectively criminalize libel against the Federal government - as if the Federal government was a individual who could be injured by libelous publications.
It wasn't a good law and Jefferson was right in allowing it to expire - but don't let's pretend that it was something different than it was.
Sedition Act of 1798 – A Brief History of Arrests, Indictments, Mistreatment & Abuse
Well, what is so bad about outlawing libel against the government?