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I think you're thinking of Reagan's "ketchup is a vegetable" bullshit.
Was referring to this specifically: https://www.nbcnews.com/health/health-news/pizza-vegetable-congress-says-yes-flna1c9453097
TBF that's not even as bad as Reagan's "ketchup is a vegetable". Canning is a totally legitimate way of preserving tomatoes at their peak of ripeness with their nutritional qualities intact (many chefs even prefer canned tomatoes to fresh ones) and paste/sauce is just the ground-up version of that. Ketchup is that plus a shit ton of sugar and/or corn syrup.
The amount of tomato sauce on pizza is dubiously small, however.
It was more about the conservative reaction to the situation. Because it was during Obama tenure, and Michelle had the gall to get all uppity and try to make kids more healthy.