Well, he didn't exactly use that phrase, but pretty close. Here's how the Washington Post is describing the war of words:
The White House and Sen. Jon Kyl (R-Ariz), the No. 2 man in the Senate GOP leadership, feuded Monday over immigration policy, as the Arizona senator said that President Obama personally told him the administration will not support stricter border enforcement until Republicans back broad immigration reform.
The White House strongly denied the claim.
At a town hall in Arizona on Friday, Kyl responded to a voter's question about immigration by detailing a one-on-one meeting he had with Obama. According to Kyl, "The president said the problem is if we secure the border, then you all won't have any reason to support comprehensive immigration reform."
"In other words, they're holding it hostage," Kyl said at the event, a video of was circulated widely online on Monday, but not from Kyl's office. "They won't secure the border unless and until is it combined with comprehensive immigration reform."
Bill Burton, a White House spokesman, said, "The president didn't say that. Senator Kyl knows the president didn't say that."
"But what everybody knows because the President has made it perfectly clear is that what we need to do is everything that we can to bring about comprehensive immigration reform," he added. "And that includes not just securing the border, but doing a lot of other things."