I have not seen any compelling evidence that government is expanding, and the expansion thereof to combat terrorism has not been shown to me to be unreasonable, despite the fact that I consider government expansion to generally be a bad thing.
And frankly, a little bit more concentration and coordination of the efforts being used to combat terrorism probably was called for in the case of, and might even have prevented, 9/11.
Cut the welfare bureaucracy in half and double the military, Cia and FBI. We'll still have less government and it'll be a better world.