The short answer is yes. The argument was that by portraying the U.S. Senate as a corrupt institution, and portraying the politicians as stooges for equally corrupt big business, the movie was sowing opposition to the American capitalist republican system of government.
According to TCM, the...
I also think that, as a first-generation immigrant himself, that patriotism is something that Capra himself felt very deeply. But it definitely didn't hurt when the film was trying to chase off accusations of Communist sympathies.